My Mortgage Blog

FHA just put in place a waiver that will allow a buyer to purchase a house that has been flipped in less than 90 days.

The waiver goes into effect February 1^st and is in place for 1 year. There are a few conditions for this though.

All transactions must be arms-length, with no identity of interest between the buyer and seller.

The purchase amount should NOT exceed 20% of the seller’s acquisition cost. But, if it does FHA has a few additional guidelines to follow…if the lender chooses to push this 20% limit.

As of right now many lenders are still reviewing this update to determine if they are going to adopt or NOT.

We’ll let you know!!