{"id":15769,"date":"2023-06-29T06:34:08","date_gmt":"2023-06-29T06:34:08","guid":{"rendered":"https:\/\/www.wallstreetzen.com\/blog\/?p=15769"},"modified":"2025-06-24T11:25:30","modified_gmt":"2025-06-24T11:25:30","slug":"fha-flip-rule","status":"publish","type":"post","link":"https:\/\/www.wallstreetzen.com\/blog\/fha-flip-rule\/","title":{"rendered":"FHA FLIP Rules and Guidelines [What Investors Need to Know About the 90 Day Flip Rule in 2026]"},"content":{"rendered":"\n

House flipping is one of the hottest investment strategies in 2026. There\u2019s serious money behind the HGTV-driven hype \u2014 data shows that one in every ten homes<\/a> in America is \u201cflipped.\u201d<\/p>\n\n\n\n

But before you pour all your cash into flipping, it\u2019s crucial to understand the less-glamorous legal considerations in the field \u2014 particularly if you plan on financing your investments with Federal Housing Administration (FHA) loans. <\/p>\n\n\n\n

FHA flipping guidelines are very clear \u2014 and very strict. In this article, we\u2019ll review everything you need to know about the FHA flip rule \u2014 including common exceptions and some investment alternatives that can save you money and time. <\/p>\n\n\n

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Hey, don\u2019t flip out!<\/p>\n

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FHA Property Flipping Rules: What Are They? <\/strong><\/h2>\n\n\n\n

Before diving into the FHA flip rule, let’s go over what FHA loans are so we’re all on the same page. <\/p>\n\n\n

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The FHA is a part of the US Department of Housing and Urban Development<\/a> (HUD), which offers federally-insured mortgages. So, even if homebuyers default on their FHA loan, the lender isn’t left high and dry with a big loss. <\/p>\n\n\n\n

Not only are FHA’s desirable from the lending side, but they’re also attractive for first-time homebuyers. Unlike traditional mortgages, FHA loans have lower minimum and credit score requirements, which makes homebuying more accessible.<\/p>\n\n\n\n

However, from a flipper’s perspective, FHA loans are a bit annoying due to their additional requirements. To prevent fraudulent sales, there are FHA flipping guidelines on when someone could sell a flipped home.<\/p>\n\n\n\n

The key FHA flip rule is referred to as the “FHA 90-day flip rule<\/a>.” This law states people who want to flip a home need to own it for (surprise) 90 days before selling it to an FHA buyer. <\/p>\n\n\n\n

After 90 days, the FHA has additional guidelines if people sell their home between 91 – 180 days. Most significantly, lenders must send a second independent appraiser during this timeframe. <\/p>\n\n\n\n

The FHA uses this second appraisal to ensure the price a seller puts on the market matches the intrinsic value of their flipped property. <\/p>\n\n\n\n

The FHA 90-Day Flip Rule <\/strong><\/h2>\n\n\n
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The FHA 90-day flip rule means FHA buyers can’t purchase a flipped property if the seller owned it for 90 days or less. <\/p>\n\n\n\n

In the FHA’s book, this 90-day period starts when the last deed for the property closed. <\/p>\n\n\n\n

An FHA-approved appraiser looks through a home’s prior ownership paperwork to determine when the 90-day clock began ticking. <\/p>\n\n\n\n

If they discover the expected date when a buyer and seller want to sign a new sales contract is within 90 days, they’ll deny the loan. <\/p>\n\n\n\n

Although not every property is subject to this FHA flip rule, most people need to remember it during the FHA property flipping process. <\/p>\n\n\n\n

FHA 90-Day Flip Rule Exceptions<\/strong><\/h2>\n\n\n\n

As hinted above, there are a few FHA 90-day flip rule exceptions for special situations, people, and institutions\u2026<\/p>\n\n\n\n

For example, suppose a government agency like the HUD conducts this property sale. In that case, it doesn’t have to abide by the FHA flip rule (which applies to the Reentry Employment Opportunities program).<\/p>\n\n\n\n

The FHA also makes an exception for sellers putting an inherited property or new construction project on the market. <\/p>\n\n\n\n

If a HUD-approved nonprofit is trying to sell a property, or the home is in a Presidentially Declared Major Disaster Area, it doesn’t have to abide by the FHA 90-day rule.<\/p>\n\n\n\n

Lastly, if the buyer is an employee who needs to relocate for work, they don’t have to wait the 90 days to use an FHA loan. <\/p>\n\n\n\n

The FHA 90-Day Flip Rule: What About Days 91-180?<\/strong><\/h2>\n\n\n\n

At last, the 90 days have passed, and you’re itching to close the deal. Hold your horses, because there are more FHA flipping guidelines between the 91 – 180 day mark. <\/p>\n\n\n\n

In this timeframe, lenders have to send an independent appraiser to assess the property’s value. The FHA will use this data to validate the property’s price and to double-check the seller isn’t artificially inflating their home’s value. <\/p>\n\n\n\n

The lender must also collect data such as repair and renovation costs plus resales within the past year.<\/p>\n\n\n\n

Lenders always defer to the lower amount even if the second appraisal is 5% above the first value.<\/p>\n\n\n\n

How To Buy a Home Despite the FHA Flipping Rule <\/strong><\/h2>\n\n\n
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There’s no “secret trick” to work around the FHA 90-day flip rule (unless you fit into one of the approved exception categories).<\/p>\n\n\n\n

However, remember that the FHA flip rule tracks the 90 days between the last deed and signing the new resale. So, it’s still legal for sellers to put their homes on the market within the first 90 days and start negotiating with buyers. <\/p>\n\n\n\n

The only stipulation is that sellers and FHA buyers can’t sign the resale agreement until day 91. So, if someone is using an FHA loan, both parties must be extra aware of the 90-day limitation. <\/p>\n\n\n\n

FHA Property Flipping: Non-FHA Loan Alternatives <\/strong><\/h2>\n\n\n\n\n\n\n

If homebuyers aren’t jiving with the FHA property flipping guidelines, there are other loan options that don’t come with the pesky 90 and 91 – 180 day rules:<\/p>\n\n\n\n