The Military Home Programs' Blog

FHA removes their 90 day ‘flip’ rule

Effective Feb 1st

FHA has reversed their earlier ruling that a property had to be owned for more than 90 days before an FHA buyer could purchase. These ‘flip’ properties had been an excellent source of homes for our VA buyers, since they were not under the same restriction. And since over 50% of the offers today are either FHA or VA, that took a lot of competing buyers out of the bidding war.

According to the FHA memo: “To help facilitate the return of repaired and habitable properties to the market in a timely fashion, additional exemptions to the 90-day resale restriction period must be granted for the purchase of properties by investors. This policy change will help to sell properties that may otherwise remain vacant for up to 90 days, while offering affordable housing options to buyers wishing to use FHA-insured financing”

This change takes place effective February 1^st, and remains in effect for 1 year. So VA buyers need to jump on any remaining flip properties in the next week before the FHA buyers are back as competition!