A property that is being resold 90 Days or less following the seller’s date of acquisition is not eligible for an FHA insured loan.  The Rule went in and out of effect over the years.  According to Rey Gallegos, Nevada State Manager & Mortgage Loan Originator (NMLS #557038) , HomeBridge Financial Services, “FHA waived the 90-Day Flip Rule for several years after the market crash and then last year removed the waiver.”

There still are some Exceptions to the Rule:

  • properties acquired by an employer or relocation agency in connection with the relocation of an employee
  • resales by HUD under its REO program
  • sales by other U.S. government agencies of single family properties pursuant to programs operated by these agencies
  • sales of properties by nonprofits approved to purchase HUD owned Single Family Properties at a discount with resale restrictions
  • sales of properties that are acquired by the seller by inheritance
  • sales of properties by banks, credit unions, Fannie Mae or Freddie Mac (in other words, foreclosures)
  • sales of properties by local and state government agencies