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Expiration of FHA Flipping Waiver

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Be sure to read this UPDATE posted 12/23/2011

In February, FHA extended the FHA property flipping waiver until December 31, 2011. As of now, this waiver has not been extended again and will expire on 12/31/11.

All loans that are utilizing the waiver to get around the 90 day seasoning required by FHA on flip properties (mainly being used now by investors who are fixing/flipping homes) must have a fully-executed purchase contract and must have a case number assigned on or before 12/31/11. No extensions will be given to this deadline. Any loans with case numbers & contracts January 1st or later will require 90 days seasoning prior to the borrower making loan application, with the only exceptions being the following:

4155.2 4.7.h Exceptions to the 90-day Restriction

The only exceptions to the 90-day resale restriction described in HUD 4155.2 4.7.e are for

  • properties acquired by an employer or relocation agency in connection with the relocation of an employee
  • resales by HUD under its Real Estate Owned (REO) program
  • sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies
  • sales of properties by nonprofits approved to purchase HUD-owned single family properties at a discount with resale restrictions
  • sales of properties that are acquired by the seller by inheritance
  • sales of properties by state and federally-chartered financial institutions and government sponsored enterprises
  • sales of properties by local and state government agencies, and
  • sales of properties within Presidentially Declared Disaster Areas.

If HUD decides to extend the waiver, I will notify you here ASAP.  Contact me if you have any questions. Be sure to read this UPDATE posted 12/23/2011