House Flipping

I’m sure most house flippers are aware of the 90 day seasoning, however there are a lot of new houses flippers that are not. If so this is for you and very important for flipping houses.

If a buyer of your property is getting an FHA loan, there is a title seasoning requirement of 90 days. In other words, if you are selling the property to an FHA buyer, you must have the title recorded in your name or company name for 90 days before the closing and funding of the new FHA loan. This precludes you from doing a double-closing or a short term (less then 90 days) flip. However there are other ways around this, but not discussed here.

Keep in mind that the 90 day seasoning rule has nothing to do with HUD-owned properties. In other words, you can buy a HUD property or any other foreclosure and flip itimmediately  so long as your end-buyer is not using FHA financing.

A new law has past, that enables home buyers FHA funding to buy foreclosed homes from banks or funding institutes that are not seasoned. This law only effects foreclosures and does not help houses flippers.

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