FHA Flipping Rule Limitations
Waiver has been extended to 12/31/2011.
The waiver to the FHA flipping rule is limited to those sales meeting the following general conditions:
* All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
* 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 sale meets specific lender conditions. (Typically, these will include a copy of the HUD-1 from the previous closing. If more than 20% markup, copies of receipts and contracts for rehabilitation.)
Conventional loans flipping rules will vary from investor to investor, 90 days from purchase is generally required.