FHA 90 Day Flip Rule Extended
This may be old news to some but I still receive calls requesting FHA 90 day flip rule information.
The FHA 90 Day Flip Rule originally prohibited anyone from using FHA financing on homes owned for less than 90 days.
In 2008 FHA lifted the ban for banks only for one year then in 2009 extended the exception for one more year.
Some lenders are have extended the 90 Day Flip rule to include VA and Conventional loans so it is a good idea to check each lender's policy before placing any loan on property owned for less than 90 days
Below is the notice extending the FHA 90 Day flip rule to May 10, 2010. The extension only applies to banks, the rest of us will have to wait 90 days before we can sell a newly purchased home with FHA financing.
This revised notice on the FHA property flipping waiver extension corrects the date in the last line of the notice that was published on 5/15/09:
"Federal Housing Commissioner Brian D. Montgomery has extended the temporary property flipping waiver to May 10, 2010. Under the waiver, homes that were foreclosed on and are being sold by the mortgagee or on its behalf may be purchased by FHA borrowers without regard to the 90-day seasoning period. The waiver does not apply to entities that purchase foreclosures either singly or in bulk for resale. Subsequent sales of such properties will continue to be subject to the standard regulatory requirements.
The waiver expires for all loans for which the sales agreements were signed by the seller and buyer on or before May 10, 2010. "
The FHA 90 day Flip rule only applies to FHA loans and does not effect VA and conventional financing.
Current lending updates can be found at: http://www.yourfhaguru.com
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