The FHA 90 day flip rule is a policy that requires you as a property buyer to wait at least 90 days from the last approved deed before you can get an FHA loan. The policy is reviewed by an FHA approved appraiser and only applies to FHA loans. So if you are not using an FHA loan, the FHA 90 day flip rule likely will not apply to you. There are also numerous exemptions to the FHA 90 day flip rule.
Exemption to the FHA 90 Day Flip Rule Include:
- HUD resales
- If the property was inherited and the seller just wants to get rid of it quickly
- When an employer or relocator has purchased the property and no longer needs it
- This could also apply to movie studios or TV production companies
- Houses being sold by not-for-profits and the government
The good news is that if you do not fall into the 90 day time frame, the normal restrictions will not apply to you. But that doesn’t mean you’re 100% in the clear.
If you’re using an FHA loan and the time frame on the last deed is between 91 and 180 days, you have a few more restrictions, although they are nowhere near as tricky as the ones in the 90 day flip rule. [Read more…]