the rules & guidelines you need to know before you sell

IMPORTANT NOTICE :: On December 10th, 2014 the Federal Housing Administration (FHA) Office of Single Family Housing announced the temporary waiver of FHA's regulation prohibiting the use of FHA financing to purchase single family properties being resold within 90 days of the previous acquisition, was to expire on December 31, 2014.  

How FHA defines prior sale occurring

FHA defines the seller’s date of acquisition as the date of settlement on the seller’s purchase of that property.

The resale date is the date of execution of the sales contract by the buyer.

The seller must also be the owner of record evidenced by a sales history report, copy of the recorded deed from the seller, or other documentation such as a copy of the property tax bill, or title commitment or binder.  

For investor owned properties documentation must be provided showing the seller is the owner of record prior to the date of execution on sales contract by the buyer.

For sellers not on the exception list (below), contracts dated prior to the 90 day period will not be eligible for FHA

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FHA Insured Homes being SOLD within 0-90 days of ownership

Homes being "flipped" within 0 to 90 days of original acquisition date (as defined by FHA) are not eligible for FHA financing - except for:

Note: The Homeownership Centers cannot grant exceptions.

FHA Insured Homes being SOLD within 91-180 days of ownership

Homes being "flipped" between 91 and 180 days of original acquisition date (as defined by FHA) are eligible for FHA financing - provided:

  • Re-sale price to FHA mortgagors is less than 100% greater than previous sale
  • If re-sale price is 100% or greater than the previous sale, a second appraisal is required and must support the value
  • Additional documentation may be required showing cost and extent of rehabilitation, if applicable 

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