FHA No Flipping Rule: Reinstated in June 2015.

 

Small home in Uspantan, Quiche, Guatemala

The FHA rule prohibiting house “flipping” during the 90 days period after the home is acquired was reinstated in June 2015. http://bit.ly/2gNcPh3

Investors who use FHA guaranteed mortgages to acquire single family homes may not resell the property within the 90 day period, beginning on the day the deed was recorded. Beginning on the  91st day, it can be sold for any price.

Investors using conventional loans may sell/flip the property during this 90 day period, but the contract price cannot exceed 120% of their purchase price. Beginning on the 91st day they can sell it for whatever the market will bear.

Photo courtesy of Flickr.com and Lon & Queta’s photostream