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FHA 90 Day Flip Rule: Is There One?

Posted on March 23 By Justin McHood

If you are wanting to buy a home and finance the home with an FHA loan, chances are that your lender may have mentioned a "FHA 90 day flip rule".

Some lenders have a rule in place that they will not lend you money for an FHA loan if the home you are buying has been bought (usually by an investor) within the last 90 days - who is then turning around and selling the home to you.

And not to confuse the issue too much -- but even though there are some lenders who won't loan you money for an FHA loan if the property has been bought in the last 90 days already... some lenders will loan you money for an FHA loan in this situation.

As long as you aren't buying it for more than 120% of what the previous owner paid for it.

Oh, and now to really confuse you -- some lenders will loan you money for an FHA loan even if the home has been bought within the last 90 days and you are paying more than 120% of what the previous owner paid for it.

Which leads me to the question: is there really such a thing as a FHA 90 day flip rule?

I guess it depends who you ask.

And if one lender tells you that there is such a thing and that they can't loan you money because of the rule, don't give up! Just go find another lender who will loan you money on an FHA loan in this situation.

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