Bc one other thing the 90 days is counted by the contract not your closing date so the purchase contract can not be dated less than 90 days from when their purchase was recorded.

Kevin, FHA will not back the loan if there is a single piece of paper that shows intent to sell before the seasoning period is up. I lease/purchase, rent-to-own will not work. I know, been there, done that. It made no sense to me, but those are the rules.

If you want to move in, you might negotiate a lease-option. Pay "rent" to the seller until the 90 days expires, exercise the option contract and all is well. If you need help with this, let me know.

Kevin Griesser
Agent/Investor
502.664.9161

FHA calls it "Seasoning Period" and another thing to note; the 91 day clock starts from the day that the sale was recorded at the Clerk's Office. So, if that took a week to get done, plan on adding days. Good luck!

Valerie is correct, the current owner must have owned the property for 90 days. If you were doing a conventional loan, this wouldn't be an issue. You probably need to do an extension for the closing date if all parties agree. It will take about 45 days to process your loan anyway.

Hi BC,

In an attempt to protect consumers, the FHA and VA have established a "90 day NO Flip Rule", which mean they will not fund a purchase loan for properties that have been owned (by the seller) for lessed than 90 days. However, it is possible to negotiate with the seller(s) and request them to push out your closing date to accomodate this law.

That 's correct, I believe the seller must be in the home 2yrs or more. I can't believe the listing agent took a listing not knowing this.