{"id":318174,"date":"2026-03-23T06:57:21","date_gmt":"2026-03-23T10:57:21","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=318174"},"modified":"2026-03-23T06:57:27","modified_gmt":"2026-03-23T10:57:27","slug":"fha-flipping-rule","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/fha-flipping-rule\/","title":{"rendered":"How Does the FHA Flipping Rule Affect Homebuyers?"},"content":{"rendered":"\n<p class=\"highlight\">The dream of homeownership is becoming increasingly difficult for many Americans. With U.S. home prices surging to <a   href=\"https:\/\/www.redfin.com\/us-housing-market\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">4.0%<\/a> in 2024, the housing market remains highly competitive. An FHA loan can be a lifeline for first-time home buyers. However, it&#8217;s essential to understand the potential pitfalls.&nbsp;<\/p>\n\n\n\n<p>One major concern is the increase in home flipping. With a staggering <a   href=\"https:\/\/www.attomdata.com\/news\/most-recent\/q1-2024-attom-home-flipping-report\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">67,817<\/a> homes flipped in the first quarter of 2024 alone, it&#8217;s crucial to know about the FHA flipping rule.<\/p>\n\n\n\n<p>Understanding this rule is just one part. Getting pre-approved for an FHA loan is also significant. Streamline your home-buying process by securing a pre-approval today!<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"What-Does-FHA-Flipping-Rule-Mean\">What Does FHA Flipping Rule Mean?<\/h2>\n\n\n\n<p>Home flipping involves the purchase and resale of any property quickly. While buying a property, the FHA rule protects the buyer\u2019s interest. There are FHA guidelines other than the FHA flipping rules to protect the buyer\u2019s interest.&nbsp;<\/p>\n\n\n\n<p>These guidelines are strict as compared to other lenders\u2019 guidelines, which include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A minimum <a   href=\"https:\/\/www.houzeo.com\/blog\/what-credit-score-is-needed-to-buy-a-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">credit score<\/a> of 580.<\/li>\n\n\n\n<li>The <a   href=\"https:\/\/www.houzeo.com\/blog\/what-is-a-down-payment\/\" target=\"_blank\" rel=\"noreferrer noopener\">down payment<\/a> should be at least 3.5%.<\/li>\n\n\n\n<li>The total <a   href=\"https:\/\/www.houzeo.com\/blog\/debt-to-income-ratio\/\" target=\"_blank\" rel=\"noreferrer noopener\">debt-to-income ratio<\/a> should not exceed 43%.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"What-Are-FHA-Flipping-Rules\">What Are FHA Flipping Rules?<\/h2>\n\n\n\n<p>You will have to abide by the 90-day flip rule if you plan to purchase a flipped home with an FHA loan. There are a few situations where FHA financing is possible within the 90-day window.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"The-90-Day-Flip-Rule\">The 90-Day Flip Rule<\/h3>\n\n\n\n<p>The <a   href=\"https:\/\/www.houzeo.com\/blog\/how-to-choose-a-mortgage-lender\/\" target=\"_blank\" rel=\"noreferrer noopener\">mortgage lender<\/a> requires the FHA appraisals to check whether the property falls under the FHA 90-day flip rule. If the 90-day rule applies to the property, the lender might reject the loan.&nbsp;<\/p>\n\n\n\n<p>This rule protects borrowers and lenders from investing in worn-out properties. Hence, as a buyer, you should wait for 90 days before you can buy a flipped home.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading margin-top-15\" id=\"The-180-Day-Flip-Rule\">The 180-Day Flip Rule<\/h3>\n\n\n\n<p>Any home sold between 91 and 180 days for twice its original price is also subject to the FHA flipping rule. According to FHA guidelines, a second appraisal might be necessary here.&nbsp;<\/p>\n\n\n\n<p>A second <a   href=\"https:\/\/www.houzeo.com\/blog\/home-appraisal\/\" target=\"_blank\" rel=\"noreferrer noopener\">home appraisal<\/a> helps the lender verify whether the seller is asking for a fair value on the house. The second appraisal must meet the following guidelines:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The second appraiser can\u2019t be the same as the first one.<\/li>\n\n\n\n<li>You don\u2019t have to pay the appraisal costs.<\/li>\n\n\n\n<li>The lender must obtain a 12-month chain of title.<\/li>\n\n\n\n<li>The lender considers the lower value if the second appraisal value is 5% or higher than the first.<\/li>\n\n\n\n<li>The seller must present the relevant documents to support the price increase.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"Why-Does-the-FHA-Have-a-Flipping-Rule\">Why Does the FHA Have a Flipping Rule?<\/h2>\n\n\n\n<p>The <a   href=\"https:\/\/www.houzeo.com\/blog\/fha-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">FHA<\/a> implemented the flipping rule to protect you from fraudulent practices where sellers may use tactics. Further, by restricting the resale of properties within a short period, FHA ensures you are not overpaying for artificially inflated quick resales. <br><br>If the purchased properties are superficially improved or renovated quickly and resold at a higher price. This fraud of adding little to no value is prohibited due to the rule. Besides it helps maintain the market stability by discouraging rapid flipping. This helps maintain more stable property values. <br><\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"What-Are-the-Exceptions-to-the-FHA-Flipping-Rule\">What Are the Exceptions to the FHA Flipping Rule?<\/h2>\n\n\n\n<p>FHA flipping rules come with a few exceptions, which include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Properties sold by government agencies like the <a   href=\"https:\/\/www.houzeo.com\/blog\/what-is-hud-home\/\" target=\"_blank\" rel=\"noreferrer noopener\">HUD<\/a><\/li>\n\n\n\n<li>Newly built properties<\/li>\n\n\n\n<li>Homes sold by non-profit organizations<\/li>\n\n\n\n<li>Inherited homes<\/li>\n\n\n\n<li>Properties owned by relocating employers or agencies<\/li>\n\n\n\n<li>Properties located in Presidentially Declared Major Disaster Areas (PDMDA)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"How-to-Buy-a-Flipped-Home-Without-an-FHA-Loan\">How to Buy a Flipped Home Without an FHA Loan?<\/h2>\n\n\n\n<p>You cannot buy a flipped home through an FHA loan if the seller hasn\u2019t owned the property for at least 90 days. However, there are different types of loans that you can apply for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Conventional Loans:<\/strong> These loans are more flexible than FHA loans with lower interest if you have a good credit score. Typically you need a credit score of at least 620 or higher with a debt-to-income ratio of 50% for <a   href=\"https:\/\/www.houzeo.com\/blog\/conventional-loan\/\" target=\"_blank\" rel=\"noreferrer noopener\">conventional loans<\/a>. <\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>VA Loans<\/strong>: <a   href=\"https:\/\/www.houzeo.com\/blog\/what-is-va-loan\/\" target=\"_blank\" rel=\"noreferrer noopener\">The US Department of Veterans Affairs (VA)<\/a> offers a mortgage program. Veterans and active duty service members are eligible for no down payment and competitive interest rates with VA.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>USDA Loans:<\/strong> <a   href=\"https:\/\/www.houzeo.com\/blog\/usda-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">The United States Department of Agriculture (USDA)<\/a> home loans are government-backed mortgages for low-income home buyers. It requires no down payment.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Bottom Line<\/h2>\n\n\n\n<p>Flipped homes are resold in a short time to earn profits. Over time, the market for homes that have been turned around significantly increased.<\/p>\n\n\n\n<p>To buy a recently flipped house, you must ensure the mortgage complies with the FHA flipping rules and guidelines. However, there are some exceptions to FHA flipping rules, such as inherited homes, newly built properties, etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Find Your New Home With Houzeo<\/h2>\n\n\n\n<p>With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale on Houzeo.<\/p>\n\n\n\n<p><strong>\u00bb Need More Clarity?&nbsp;<\/strong>Read these exclusive&nbsp;<a   href=\"https:\/\/www.realestatequeen.com\/houzeo-reviews\/\" target=\"_blank\" rel=\"noreferrer noopener\">Houzeo reviews<\/a>&nbsp;and learn why the platform is the best in America\u2019s competitive housing market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\">Frequently Asked Questions<\/h2>\n\n\n\t\t<div class=\"wp-faq-schema-wrap wp-faq-schema-accordion\">\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhat are the conventional loan flipping rules?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p><a href=\"#How-to-Buy-a-Flipped-Home-Without-an-FHA-Loan?\">Conventional loans<\/a> are more flexible than FHA loans with lower interest if you have a good credit score. Typically you need a credit score of at least 620 or higher with a debt-to-income ratio of 50%.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tCan you use FHA for investment property?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p><a href=\"https:\/\/www.houzeo.com\/blog\/fha-loan-for-investment-property\/\" target=\"_blank\">FHA loans<\/a> can't be used for investment properties because they are mainly for owner-occupied properties. The Federal Housing Administration requires you to live on the property when you acquire an FHA loan.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhy are there FHA flipping guidelines?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p><a href=\"#Why-Does-the-FHA-Have-a-Flipping-Rule?\">FHA flipping guidelines<\/a> protect buyers by requiring a 90-day waiting period before a flipped house can be purchased with an FHA loan. Further, by restricting the resale of properties within a short period, FHA ensures you are not overpaying for artificially inflated quick resales. <\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">FHA Flipping Rules constrain the buyer from purchasing a recently sold house. Learn all about FHA Flipping Rules and...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">5 mins read<\/span><span class=\"date\">Mar 23, 2026<\/span><\/div>","protected":false},"author":119,"featured_media":427531,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46226],"tags":[38449,23360,38448,23362,23361,23359],"class_list":["post-318174","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller","tag-90-day-fha-flip-rule","tag-fha-90-day-flip-rule","tag-fha-90-day-flipping-rule","tag-fha-flip-guidelines","tag-fha-flipping-guidelines","tag-flip-rule-fha"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Does the FHA Flipping Rule Affect Homebuyers?<\/title>\n<meta name=\"description\" content=\"The FHA flipping rule protect buyers from buying worn-out properties. 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