FHA Flipping Guidelines: The 90-Day Rule
Flipping a home too quickly could cost you the buyer.
The FHA 90-day flip rule stops buyers from using FHA loans on properties resold too soon after purchase, which can throw a wrench into your timeline if you're not ready for this. Below, we’ll break down what the rule is, how long you actually need to wait, and when exceptions kick in.
The FHA 90-day flip rule is a guideline set by the Federal Housing Administration (FHA). This government agency insures loans for low- to moderate-income buyers, and its backing makes it easier for borrowers to qualify for mortgages with smaller down payments and more flexible credit requirements.
But that helping hand comes with a few strings attached.
One string is that you can’t use an FHA loan to buy a home already sold within the last 90 days.
The FHA counts those 90 days from the date the seller’s deed was recorded, not from when they moved in, closed, or listed the property.
The goal is to prevent fraud and inflated prices from quick-turnaround sales, where buyers are often left at a disadvantage. These rules discourage shady resellers from slapping on a coat of paint and flipping a home for double the price without doing real work.
Here’s an example:
Say someone buys a house on January 1 and wants to resell it. If a new buyer tries to use an FHA loan before April 1 (when the 90-day clock ends), the lender will reject the application, no matter how strong their finances are.
However, a few exceptions allow you to get around this restriction, which we will discuss shortly.
The 90-day flipping rule FHA buyers and sellers face can be broken into three time windows.
If the seller has owned the home for fewer than 91 days, FHA buyers won’t be able to get a loan for it, no matter how good the inspection looks or how much they love the kitchen tile.
This is because the FHA won’t insure loans on homes resold within this period. The only way around it is through a narrow set of exemptions (which we’ll cover later), but most flips won’t qualify.
FHA financing becomes an option with only minor restrictions during this window.
If the seller’s asking price is much higher than what they paid, the lender might require a second appraisal.
Generally speaking, the FHA flipping rule 90-180 days flags any resale with a price increase over 100%, especially in specific zip codes, to make sure the new value reflects real improvements, not just a rushed, sloppy, cosmetic flip.
FHA loans are allowed with no special conditions after the seller has held the property for more than 180 days.
While the FHA 90-day flip rule is firm for most resales, a few exceptions allow buyers to use FHA loans before the minimum timeframe. These FHA 90-day flip rule exceptions are limited, but worth knowing if you’re on a tight schedule.
You may qualify if:
The FHA 90-day flip rule protects buyers and lenders from price inflation and shady flips. So, if you’re trying to resell a newly purchased home, our advice is to know the rule, track the deed date, and don’t assume every buyer can get funding immediately.
And if you’re a buyer trying to get an FHA loan, make sure the seller has owned the home long enough, or you might fall in love with a house you can’t finance.
