Flipping Okay with FHA, But Guidelines Exist

Some lender have updated their FHA flipping guidelines to allow an FHA flip transaction after only 30 Days. Previous FHA guidelines did NOT allow flip transactions within the first 90 days and required two appraisals for flips from 91 - 180 days. That process has changed


The guidelines still require two appraisals for flip transactions from 31 days - 180 days period.  The buyer can only pay for one of the appaisals. The seller in a 31- 180 FHA flip transaction must agree to pay for the second appraisal.

A FHA transaction bought directly from a bank (i.e REO Owned) does not constitute a flip transaction simply because it a foreclosure. A flip transaction is if an investor buys the property at auction or bank, etc. and is trying to re-sell, or "flip" it, for a quick profit.