FHA has published FHA Info 14-73 announcing the expiration of the property flipping waiver in effect since 2010. Effective for sales contracts executed on or after January 1, 2015, properties being sold within 90 days of the seller’s acquisition are ineligible for FHA financing. FHA deems a sales contract to be executed when all parties to the contract have signed the contract, and it’s enforceable under state law. FHA defines the seller’s acquisition date as “...the date of settlement on the seller’s purchase of the property.” Under FHA’s prohibition on property flipping, the sales contract for purchase transactions must be executed 91 or more days after the seller’s acquisition date. The following sales are the only transactions exempt from the 90 day waiting period:

• Sales of REO properties by HUD
• Sales of REO properties by other federal agencies • Sales of HUD REO properties by nonprofit organizations that have been approved to purchase and resell HUD REO properties • Sales of properties by state and federally chartered financial institutions • Sales of properties by government sponsored entities (GSEs) • Upon publication of a notice by HUD, sales of properties in presidentially declared federal disaster areas • Builders selling newly built homes or constructing homes for borrowers • Properties acquired by an employer or relocation agency in connection with the relocation of the borrower • Sales of properties inherited by the seller(s)

For more information please contact

Gustavo E Saballos

Mortgage Loan Originator

NMLS 433988

Cell:      (727) 641-5958

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.