The demise of the FHA 90 Day Flip Financing rule has been incorrectly reported. Inaccurate reports continue to make their way around stating that certain deadlines have now passed for the FHA 90 Flip Financing Waiver. I am pleased to report that they are untrue at this time.
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.
In the last month 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 or December 20th. 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. Some lenders never even offered 90 Day Flip financing to begin with.
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.
Until that time, it's business as usual.