I'm seeing conflicting responses on the FHA 90 Day Flip Rule (That is, investors buying a property, and selling it within the next 90 days are NOT allowed to use FHA financing) Is it waived at the moment, or is it still being enforced? If it is waived, does anyone know when it is re-enabled?

I apologize if this is a double post, I've done a search for the keywords and have not found it.

I appreciate your time!!!! :)

I think it depends on the investor but the last flip I did the buyer had to wait 90 days. I rented it to them so it wasnt bad

It is not and never was waived for investors. It was only waived when the home was bank owned. i.e. bank bought the property back at sheriff sale then listed and sold under contract within the next 90 days.

I just read something that the FHA 90 Day Flip Rule was going to be waived as of Feb 1, but other rules still apply.

I represent a client who buys and sells properties (sometimes ownership is less than 90 days. Will this help them be able to accept FHA offers?

I was also wondering if anyone knew about the details regarding the "if sales price of the property is 20 percent or more ..... In cases where no work has been done, the appraiser must provide explanation to support the increase since the prior transfer; and". Do you know if purchasing a house at foreclosure is acceptable support. By foreclosuring meaning purchased at auction without seeing the properties interior, with no reports or disclosures, without knowledge of who occupies, without title insurance, paid in cash....and all of the risk involved with purchasing a foreclosure/auctioned property.

I am in California and the commission expense on the property to sell is 7 to 9 %. I was wondering if the calculation of the 20% increase is net after expenses including commission, & property taxes. The last property my clients acquired had back property taxes of nearly $16K so it makes it appear as if they made more than 20% but if you factor out the expense of the property it is much less.

If there is an experience loan officer with foreclosure properties out here please contact me.

Thanks

You are right. Things are ever changing aren't they! It was. Problem is a very limited number of lenders are allowing this despite FHA insuring the loan.

An investor cannot use FHA to buy a N/O/O property UNLESS it is a HUD owned property and the jurisdictional HOC allows it.

Chris was talking about an investor purchasing a home and trying to sell it to a buyer using FHA owner occupied financing within 90 day of when the investor purchased the home.