Your question is a little backwards. The investor wouldn't have purchased with an FHA loan. 91 days is when an FHA borrower would have to wait to purchase it.

There are too many other cash & conventional buyers out there bidding on properties, so if you need FHA financing & you see one of these come along, you can forget, you won't get it. Just move on to the multitudes of other properties available that you CAN buy with FHA financing.

emilyknell1@yahoo.com

Good answers below.

One tip: Watch out for the new appraisal when flipping. That's true of any flip, not just one involving FHA. Lenders are understandably nervous when someone buys a home for, let's say, $200,000 and sells it 91 days later (or 30 days, or 60 days) for $300,000. Investors who rehab typically keep very detailed records of what they've done to the property (new bathrooms, granite countertops, wood floors, etc.) in order to help justify the increase in price.

Good luck.

Thomas -

Google or Bing - "FHA anti flipping" and you will find many great reference points. Here are a couple for you

http://usgovinfo.about.com/cs/consumer/a/antiflipping.htm
http://www.car.org/newsstand/newsreleases/2008newsreleases/f…

Good luck,


Thom Colby
Broker & REALTOR
Orange County, CA
Houston, TX

Hi here is a recent finding on an FHA similar to yours:

Property Flipping
90 days or less since property was last sold - Property is NOT eligible for FHA financing. Property tied to assigned FHA case number.

91-180 days since the property was last sold - If the current sales price is the same or higher than the sales price when the seller acquired the property, then need a second appraisal completed bay different appraiser, the second appraisal cannot be charged to the borrower (it must be paid by the seller or broker). If the current sales price is less than the sales price when the seller acquired the property, then do not need any additional documentation and one appraisal will be sufficient.

If you're talking about selling it to a new buyer who is using an FHA loan?
Make sure the purchase contract is dated 91 days or later after the original closing.

As far as if there are any restrictions as to when you can sell it if the investor bought it FHA?
I'd peruse the loan docs from the original purchase thoroughly, especially if the home was a bank owned when the investor bought it, and s/he stated owner occupant on contract or any loan docs.

Hi Tom, Karen is correct, it's 90 days for a Buyer using FHA financing; however, there is no such limitation for conventional non-FHA financing.

Best, Steve

Hi,

I don't think there is a time frame if you purchase an FHA home, but if you have an FHA buyer. If the buyer is going to use FHA financing then the seller has to have owned the home for 90 days.

Karen