Can the C buyer be an FHA buyer?

Question

i have gotten conflicting answers to this question.

Sam M. · Answer

The "C" buyer can and could always be an FHA buyer. What you are likely concerned about is the 90 day restriction meaning you had to hold title for 90 days before the FHA lender would fund your  "C" transaction.
                    
                     That restriction was lifted for now but there have been some wrinkles as posted by some in this thread:

http://www.biggerpockets.com/forums/312/topics/42286-what-is-the-seasoning-rule-with-fha-loans-

Ted Akers · Answer

FHA buyers are eligible under the new guidelines for more than a 20% spread with a second appraisal and a home inspection.  I have heard of one approved well above 20% after the client paid for a third appraisal.  Although ok within guidelines, most lenders are likely to have real heartburn.

Maryann L. · Answer

We just rejected an FHA buyer.
REASON:  We were making more than 20% profit and I guess the new guidelines state if you make more than 20% a BPO is to be ordered and you have to justify i.e. you rehabbed it, why it's higher.

This same buyer came back with conventional financing.

Susan Flowers · Answer

In CA you can flip to a FHA buyer however there are strict lender guidelines. You may want to consult with a loan originator in your area to recieve a list of the guidelines.

James Ward · Answer

The short answer is- YES.
The long answer is- Check the above mentioned thread.  The End Buyer can be using FHA, but their Lender MUST be fully disclosed of what is happening and they also must understand and feel comfortable with the transactions.

Ted Akers · Answer

There are differing oppinions, but I choose Jame's answer.

Justin S. · Answer

I would plan to hold the property a few weeks if this were the case.