HUD announced that beginning February 1, 2010, they are waiving the 3 month flipping rule.
As of this writing, it will stay in effect for one year.
Below are the details of the lift on the FHA rule.
This waiver is limited to those sales meeting the following general conditions:
1. All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
2. In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
3. The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Details can be found at: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf