How Does the FHA 90-Day Flip Rule Work?


  • Mark Cafiero says:

    Hi there. Great article, and thanks for posting.
    Not sure I’ll get a reply in time but thought I’d ask…

    We are buying a home with an FHA and we’re surprised during the underwriting to find that we cannot close since the house we were under contract for was only about 50 days flipped.

    The sellers say they are willing to hold it but under the agreement that should our loan get declined again in underwriting, that they should be awarded our $5000 earnest money as our penalty.

    Is this common practice? It puts a bit of a sour feeling in my gut. It feels a bit manipulative We assume since we are pre-approved that all should be good but I’d hate to lose that earnest money.

    Any thoughts? The seller is giving us until Monday to make this decision.


    • Mark Ferguson says:

      Hey Mark, That seems like a bad move by the seller. It is not your fault the flip rule came into play. I would be hesitant to give up that much earnest money. Maybe they are bluffing?

  • Hey Mark
    I have a property that was recently refinanced into my name, and a fha buyer is now interested in buying property. Do I have to wait the 90 days ? Even though my company (I’m majority owner) held the property.

    Thanks again and great post!

    • Mark Ferguson says:

      If it was just refinanced it should not matter, if you sold it from your company to yourself it might.

  • Lubin R Garcia says:

    Do you have to have a 2nd appraisal on an FHA loan after 90 days but before 180 days even if you close after 180 days?Contract was signed 35 prior to the 180 days.

    • Mark Ferguson says:

      Sometimes if the selling price is much higher than the buying price