January 29, 2011, FHA formally announced the suspension of their 90 day Flip Rule to December 31, 2011, so this long standing FHA flip rule has been officially extended by FHA for another year.
The thing to remember is that not all lenders will also waive their flip rules; if you need to find one - please contact me.
This flip rule waiver is limited to sales of the homes meeting the following conditions:
~no identity of interest between the Buyer and Seller.
~Seller holds title to the property.
~property was marketed openly on MLS, auction, for sale by owner etc. Any contracts that refer to an "assignment of contract sale" maybe a red flag.
~no pattern of previous flipping evidenced by multiple title transfers within 12-month period.
There are also special reguirements for cases in which the sales price of the property is 20% or more above the Seller's purchase cost; it has to be justified by supporting documents or a second appraisal. There's more to know - please email me if you need more information.