FHA 90-Day Flip Rule & Buyer Offer

Rehabbing & House Flipping
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FHA 90-Day Flip Rule & Buyer Offer

Mike Romano
Investor · FL · Member since 2022 · 69 posts · 21 votes

Hey everyone,

I have a buyer ready to submit a full asking price offer on my flip, but the 90-day flip rule won’t be lifted for another two weeks. I really don’t want to lose this buyer—what’s the best way to navigate this?

Would it be a good idea to take a deposit to secure the deal until the rule clears? Or should we sign the contract now and set the execution date for two weeks later?

I’d really appreciate any advice or experiences you can share. Thanks in advance!

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  • Obed Calixte
    Real Estate Agent · St Petersburg, FL · Member since 2019 · 321 posts · 182 votes
    1y

    You can't sign a contract now - once both parties sign, it is executed. There is no ability to set execution date to the future.

    The 90 day rule starts from the date the current deed was recorded to the date the contract with FHA buyer is signed. There are limited exemptions such as if you inherited the property where it would be allowed.

    There are technical means to navigate the 90 day rule but your best bet by far is to talk to the lender and let them know the situation and ask for their direct guidance.  

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  • Mike Romano
    OP
    Investor · FL · Member since 2022 · 69 posts · 21 votes
    1y

    Thank you!  @Obed Calixte

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  • Ty CouttsBusiness Member
    Lender · Denver, CO · Member since 2022 · 467 posts · 230 votes
    1y

    Hey Mike, 

    In this situation, it's important to be cautious and transparent. Taking a deposit to secure the deal can be a good option, as it shows the buyer is serious and committed while also giving you the time needed for the 90-day rule to clear. However, you should have a clear agreement in writing that outlines the timeline and conditions. Alternatively, you could draft a contract with a delayed execution date, stating that the agreement will officially go into effect once the rule is lifted. Either way, make sure to consult with your real estate agent or attorney to ensure everything is legally sound, and keep the buyer informed about the timing. If you have any questions, feel free to Dm me.

    [email protected]719-641-5169
    Ty Coutts - Aslan Home Lending 544 Reviews
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