FHA 90 Day Flip Rule – On Hold for One Year

FHA 90 Day Flip Rule – On Hold for One Year

As of February 1, 2010, the seller of the property does not need to be on title for 90 days before the buyer can obtain an FHA loan.


Requirements of 90 Day/Flip Waiver

  1. Transactions must be arms length.
    • Seller must hold title to the property
    • Property must be “marketed openly and fairly.”
      • ie. On the MLS, auction or for sale by owner
  2. If the sales price is 20% over seller’s purchase price, waiver only applies as follows:
    • Increase in value is supported by an appraisal showing renovations that show the increase in value or appraiser provides an explanation for increase in value since the previous sale.
    • and buyer’s lender orders a property inspection and provides it to buyer before closing.

Effect on Orange County Buyers?

What does this mean to a buyer wanting to purchase in Costa Mesa, Huntington Beach or elsewhere in Orange County?

Before this rule was waived, many first time buyers who planned to use FHA with its low 3.5% down payment, have been frustrated by the fact that they are missing out on the opportunity to buy many homes that have been bought at courthouse auction by investors who then “flip” the house. 

The Orange County real estate market has had low inventory (number of homes for sale) for the past several months, especially under $750,000.  When a buyer can’t qualify to purchase a home that’s being “flipped,” the number of homes available to that buyer can decrease substantially.

This waiver will allow these buyers who had planned to use FHA loans to compete in Orange County’s competitive buyer’s market.

For more information see 90 Day Waiver.

 If you would like to take advantage of this limited time waiver to purchase a home with an FHA home, please call me at 714.319.9751.


Click for a free list of Orange County foreclosures or a free list of Orange County short sales or e-mail Me!


About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.

Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? Contact me at christine@donovanblatt.com or 714-319-9751 to discuss your options.

Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.

Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.

Copyright © 2010 by Christine Donovan, All Rights Reserved. FHA 90 Day Flip Rule – On Hold for One Year 




Leave a Reply

Your email address will not be published. Required fields are marked *