Flipping with FHA Loan

[Damian LoBasso]

Hello All,

As I continue my research on financing options for a flip I am interested in performing, I seem to be receiving conflicting information as to the timing restrictions should I take out an FHA Loan to finance the property. Are there any requirements per FHA that I occupy the house for a minimum amount of time before reselling (some sources are saying I need to occupy the home for 6 months otherwise I am in breach of the contract)? Any additional guidance relating to flipping with an FHA mortgage would be a tremendous help!

Note: This does not relate to the 90-day hold that is required for an FHA-eligible buyer to receive financing.

Thank you as always for your help!

[Max T.]

FHA will only lend for homes in livable condition. So you won't be buying very distressed property at big discount. But hey you could do FHA for the house and put the renovations on a credit line. With so little cash invested you'll have a great CoC return if you buy right.