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The Federal Housing Administration’s (FHA) Office of Single Family Housing has announced that the

temporary waiver of the FHA 90-day Property Flipping regulation will expire on December 31, 2014.  This

waiver had exempted all sellers from the 90-day property flipping rule between February 1, 2010, and

December 31, 2014; however, effective January 1, 2015, the waiver is no longer in effect.


Sales contracts executed within ninety (90) days of the seller’s acquisition date will be ineligible for FHA financing unless the seller meets one of the exemptions below:

  • Sales by HUD of Real Estate-Owned (REO)
  • Sales by another agency of the United States Government of REO SFD properties
  • Sales of properties by a nonprofit organization approved to purchase HUD REO SFD properties
  • Sales of properties that were acquired by the sellers through inheritance
  • Sales of properties purchased by an employer or relocation agency in connection with the relocation of an employee
  • Sales of properties by local or state government agencies
  • Sales of properties located in areas designated by the President as federal disaster areas


  • The current waiver applies to all sales contracts executed on or after February 1, 2010, until 11:59 p.m., December 31, 2014.  FHA deems a sales contract to be executed when all parties to the contract have signed the contract and the contract is enforceable under the law of the state in which the property is located.  Mortgages that are made on properties for which sales contracts have been executed after 11:59 p.m., December 31, 2014, are not eligible for a waiver of the regulation prohibiting property flipping.
  • All sales contracts executed on or after January 1, 2015, must be in compliance with Regulation §203.37a Sale of property.

For more information contact

John McClellan 
NMLS# 207768
Branch Manager

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