FHA Flip Rules - Educate Your Buyers & Sellers! *Must be completely arms length – no identity of interest between seller, buyer or any party involved in transaction *No previous flipping in the past 12 months *Has to be marketed open and fairly If sales price is 20% or more over the acquisition cost then: *Supporting documentation and/or second appraisal (all lenders I know are requiring 2nd appraisal) – borrower can’t pay for second appraisal *Home inspection ordered by lender – Lender pays for home inspection but can charge the borrower for it These apply to flips sold within 90 days of prior purchase. The clock starts when the deed transfer takes place and goes through the signing of the contract to purchase. If you sign a P&S to purchase a flipped property within 90 days of the current owner’s purchase, this is a flip and these rules apply.
Kathleen Cooper Best Option *** RE/MAX Professional Associates *** LICENSED IN MA!
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