FHA 90 day flip rule. Does the contract need to be executed after the 90 days or can it be before?

7 Replies

Just closed on a home I can remodel in about 4 weeks. I was wondering if I can list on the market and get an FHA buyer before the 90 day rule. Or do I have to wait until the 90 days are up to get a contract signed? I figured, get the buyer now, work on his closing and by the time the 90 days are up he will be ready to close. Don't care if I have to pay a 2nd appraisal.

The 90 day FHA "anti flipping rule" is currently suspended. It is not in effect at least until December of this year. It's quite possible they will continue to extend the suspension.

With a 2nd appraisal, there is No seasoning/delay required.  To Avoid the 90 day/2nd appraisal...some lenders are 90 days closing-to-closing, some 90 days closing-to-purchase contract.

Originally posted by @Joshua Marriott:

The 90 day FHA "anti flipping rule" is currently suspended. It is not in effect at least until December of this year. It's quite possible they will continue to extend the suspension.

 By any chance would you have a link where I can read on this? I closed on a flip in March of this year. I actually opened escrow about 3 months before but the lender told me(like 35 days after the offer was executed) that we had to redo everything until the 90 days were completed.

*Meant to say 5 months prior to closing(don't see an edit option anywhere).

@Manuel Sarabia  

what Joshua was telling you is: There used to be a Prohibition whereby FHA would Not finance a property within 90 days of a previous sale, period...that rule is what is suspended. However currently, for FHA to finance a purchase within 90 days of a previous sale, they require 2 appraisals.

Originally posted by @Joshua Marriott:

This link explains the need for a 2nd appraisal:

http://www.123flip.com/education/fha-90-day-rule/

 I didn't want to link to my own blog here, but Joshua was nice enough to do it for me...  :)

That article should give you the gist of what the current situation is (read each of the bullets to understand how this is being implemented in the real world, which is slightly different than FHA rules)...

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