Is There a Way Around the 90-Day Flipping Rule?

[Mike Romano]

Hello,

I was wondering if there is any workaround for the 90-day flipping rule. The challenge I face is that all my property flips are completed in under 6 weeks. Consequently, every time I list a property on the market, FHA buyers are disqualified due to the 90-day ownership requirement. I'm operating in the Florida market.

Thanks!

[Teri Feeney Styers]

@Mike Romano homes that were purchased through HUD (repos) are exempt from the rule.

[Wayne Brooks]

@Mike Romano Nope, no way around it.

[Peter Vekselman]

this comes with the territory.  but if these types of deals and buyers are working for you, dont change a thing.  you got a working model!!!

[Mike Romano]

Thank you to all for your help.

[Bill J Fay]

Negative. But hey, that means you are flipping very efficiently! 

[Arran Mcconnell]

I just ask if my buyers want to switch over to conventional. I was having this problem on every flip when interest rates were at 4%. Now my turn time usually falls around 4 months.

[Pham Quang]

There are a few exceptions to the FHA 90-Day Flip Rule, but realistically the only practical option are resales by HUD.

One of my investors has a very efficient process with his flips (6-8 weeks, sometimes less depending on work needed), and his solution is to always buy and keep 1 or 2 properties "in the pipes" while his crews finish up previous ones. Not really a way around, but just how one person deals with it. 

But I'd say you have an efficient process as well. . 

[Nate Herndon]

Quote from @Mike Romano:

Hello,

I was wondering if there is any workaround for the 90-day flipping rule. The challenge I face is that all my property flips are completed in under 6 weeks. Consequently, every time I list a property on the market, FHA buyers are disqualified due to the 90-day ownership requirement. I'm operating in the Florida market.

Thanks!

Sounds like you are really moving! That's really impressive. Many of my clients who choose to hold properties refinance in under 90 days at 120% of cost basis or 75% of ARV, whichever is less.

If you ever ventured into leasing with an option to buy, that might help with the turnaround.