FHA Flipping Rule Explained

by Tim Hart | Dec 20, 2022 10:40:00 AM

With our market in SWFL having more rehabbed properties coming onto the market, it is a good time to remind you of FHA Flipping Rule.

If the Seller has owned the property for 90 days or less, then you can’t go under contract with an FHA buyer. You will need the buyer to go under contract on Day 91.


This rule does not apply to Conventional or VA.

If the Seller has owned the property between 91 days and 12 months AND the sales price has increased by more than 5% of the Sellers purchase price FHA could ask for a 2nd appraisal.

If the sales price has increased by 100% or more of the original purchase price within that 91 day -12 month time window, you can expect a 2nd appraisal request from FHA.

Feel free to share this with buyers looking at properties like this or your investors that are flipping houses.

Born and raised in Southwest Florida, I have been in the Mortgage business since 2001 I'm a grizzly, battle tested mortgage veteran. I am also the Host of Rates & Reels, which is the most popular fishing show in Southwest Florida, hosted by a guy named Tim. In my spare time I love spending time with my family, coaching baseball, and anything else my kids or wife want me to do. I would be happy to help you or someone you know with any of your Mortgage needs.

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