What about property flipping?

FHA prohibits property flipping, making it impossible for a borrower to obtain FHA financing on a home that the seller has owned 90 days or less, UNLESS the seller is a government agency selling a foreclosure or the seller inherited the house. If a property is re-sold between 91 to 180 days from seller’s purchase and the sales price is 100% higher than the initial price, FHA requires an additional appraisal. If re-sale takes place between 90 days to 12 months, FHA reserves the right to request an additional appraisal if the sales prices increases 5% over the last sold price. Conventional loans have other guidelines depending on the situation and the investor. Call us should you have a specific case!

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