Good afternoon,

I wanted to share some great news with you as we head into the weekend. Hot off the press, FHA/HUD has just announced that it is relaxing its 90 Flip rule for a period of one year. This waiver is effective for all sales contracts dated on or after February 1, 2010. HUD is waiving the 90 day waiting period which means that homes CAN be sold within 90 days of the date of their prior sale. Here are some of the key details:

1. Applies to private sellers and investors selling their homes

2. Arms length transactions only

3. In cases where the sales price is 20% or greater than the seller’s acquisition, we must justify the increase in value with supporting documentation of renovation, repair and rehabilitation work

a. If no such work was performed the appraiser must provide an appropriate explanation of the increase in property value since the prior title transfer

b. We must order a property inspection and provide that report to the home buyer

For a complete PDF copy of the waiver please click here.


Yes this the real deal! The 90 Day Flip Rule has been waived.

Here’s what to look out for:

1. Make sure sellers can document their investment into the property in cases where price is greater than 20% of their cost/price

2. Make sure the appraiser will be able to document/justify the value. Not to sound like Yogi Berra – if the value is there, it is there so I don’t see this as being an overwhelming challenge. – just make sure comps clearly support list/sales price