FHA 90 Day Flip Financing Is Still Available

Mortgage and Lending with Guaranteed Rate NMLS# 2611 NMLS #151088

I have seen several inaccurate posts and comments lately regarding the ending of HUD's 90 Day Flip Waiver for FHA mortgages.  On January 15, 2009, HUD announced a waiver to its restriction of a borrower being able to obtain FHA financing on a property that had been acquired by the seller in the 90 days preceding the sales contract date. 

The waiver took effect on February 1, 2010.  The expiration date of the waiver was set as 12 months from its starting date.  That leaves the waiver to expire on January 31, 2011 unless HUD extends it further.

Over the past couple of weeks, I have seen and heard several inaccuracies.  Some have reported that all FHA Flips must close by December 19th.  Others have said that FHA Case #'s had to be issued by December 10th.  Various dates in December have been thrown around for varying stages of the approval and closing process.

The fact is that, to date, HUD has not issued any additional announcements regarding the ending of the 90 Day Flipping Waiver.  The original announcement from January 15, 2009 stands today as the only directive. 

It is true that each lender is placing its own changes to the program.  Some lenders are in fact requiring that FHA Case #'s be issued by a certain date.  There are lenders who have set deadlines for closing dates.  Any restriction other than January 31, 2011 is simply that one lender's requirement and is not the result of a directive from HUD. 

At some point in the coming weeks, HUD will issue an update regarding the waiver expiration.  They may very well extend the expiration date of the waiver. 





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All mortgage lending guidelines are accurate at time of post, but are subject to change without notice.  Please call for the most current information.




Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Dan Rosenberger 12/18/2010 05:20 AM
  2. Josette Skilling 01/06/2011 03:00 AM
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Alan Wells
Iron Valley Real Estate - Lebanon, PA
Residential and Commercial Sales

Thanks for the clarification on this issue. I have heard various information about this as well.

Jan 06, 2011 02:06 AM #19
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Alan....There is a lot of mis-information floating around about mortgage guidelines.

Jan 06, 2011 02:11 AM #20

Thanks for sharing - good info to have.

Jan 06, 2011 02:30 AM #21
Patricia Beck
RE/MAX Properties, Inc., GRI, CDPE - Colorado Springs, CO
Colorado Springs Realty

Thank you for the information Rodney.  I wonder if HUD will extend it or not, we'll see.

Jan 06, 2011 02:55 AM #22
Kevin Walton

I would be surprised if they didn't extend.  The Feds just extended the tax deductibility of PMI for another 12 months, I would hope HUD follows suit.

Jan 06, 2011 07:30 AM #23
Brad Hornshaw
Brad Hornshaw Realtor Lynnwood, Bothell, Everett - Lynnwood, WA
Realtor, Listing Agent, Buyers Agent, Investments

Rodney good info thanks for the update .........Brad

Jan 06, 2011 07:35 AM #24
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Patricia....I would be surprised if HUD does not extend it. 

Kevin....You are probably correct.

Brad....You are welcome.

Jan 06, 2011 07:54 AM #25
Paddy Deighan JD PhD
TimeshareLawyers.pro - Vail, CO
Paddy Deighan J.D. Ph.D

excellent post...full of useful information and some clarification of frequently mis-stated information

Jan 06, 2011 08:02 AM #26
Nancy Fraser
Exit Realty Premier - Massapequa Park, NY
Realtor, Massapequa Homes for Sale 516-729-0278


Thanks for clearing that up, I appreciate your information.

Jan 06, 2011 09:26 AM #27
Dennis & Terri Neal
RE/MAX, Big Bear - Big Bear Lake, CA
Your Home Sold in 45 Days or We Se

Thanks for this update. There are so many rules changing it can be difficult to keep up with them. I usually go the the website of the agency making the rule and do a search from there.

Jan 06, 2011 11:10 AM #28
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty
I think HUD is having lots of issues with re-vamping the buying process, etc. It will be interesting to see how this issue works out as well. Thanks for the info.
Jan 06, 2011 12:08 PM #29
Mike Henderson
Your complete source for buying HUD homes - Littleton, CO
HUD Home Hub - 303-949-5848

Let's hope they extend.  Surely there is a link to have congress support this, a lobbying group, or public comments.  If you know it would be great to add to the post.  You sound very knowledgeable about this.

Jan 06, 2011 04:47 PM #30
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Thanks Rodney for the information.  I have an offer in now on a flip that was purchased Oct. 21, 2010.  My clients are using a Wells lender.  Hopefully, we'll be ok.

Jan 06, 2011 06:10 PM #31
David Evans
HUD NLB Cumming GA

Flipping is an extinct species in this economy. Just another hurdle the investor must have in their tough task today...

Jan 06, 2011 06:10 PM #32
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I have nothing but admiration for you mortgage people who manage to keep track of all the changing rules!

Jan 06, 2011 08:28 PM #34
Randal Jenkins
Coldwell Banker F I Gray and Sons Residential, Inc. - New Port Richey, FL

I thought the 90 day FHA flip rule was for flips where the investor makes 20% or less.

One of my investors had a deal that looked like it was over 20%, but when the expenses were itemized it was more like 12%.

The lending time line took it past the 90 days.  It eventually closed.

Most of my deals are with cash buyers....I dont want to do any more deals with financing....

Course, you do what you gotta do.

Jan 06, 2011 11:18 PM #35
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

In any case unless the extend it the waiver will be ending soon.  I will keep this in mind.

Jan 07, 2011 04:33 AM #36
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Paddy...There is often a lot of mis-information floating around online.

Nancy....You are welcome.

Dennis & Terri.....That is always a great idea.  Just don't forget that almost every lender also has additional guideline overlays.

Karen.....HUD has definitley made a lot of changes in the last 2-3 months.

Mike....I am anticipating that it will get extended.


Jan 07, 2011 06:18 AM #37
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

DeeDee.....I don't know the policy of Wells.  I would advise asking the loan officer ASAP.

David....Property flipping is very difficult due to the potential for mortgage fraud.

Marte....It is definitely a challenge.

Randal....The 90 Flip Rule is for any REO property purchased by an investor then resold to a new buyer within 90 days.  There are different guidelines for increases of <20% and those over 20%.  The closing date is really irrelevant.  To determine the 90 days, HUD requires use of the acquisition date by the seller and the date of the new sales contract.

Gene.....I think it will probably be extended.

Jan 07, 2011 06:24 AM #38
Margaret C. Taylor
Century 21 New Millennium MD - Mechanicsville, MD
St Marys/Calvert/Charles MD Real Estate Agent

Thanks for the up date.  At least I will be aware and refer any investors to you mortgage specialists for the latest rules.  Margaret C.

Jan 12, 2011 12:37 AM #39
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