Navigating the 90-Day Flip Rule

If your buyer is using an FHA loan, you must own the house for at least 90 days in order to comply with the 90-day flip rule. In the last year for which we have data (2023), 15.6% of all new single-family mortgages in the U.S. were backed by FHA. 29% of all first time home buyers used an FHA loan in 2024. These stats make it likely you will need to own the home for at least 90 days. Here are some things you can do to work around it.

1. Structure the sale with a delayed closing. Go ahead and write the contract. Let the buyer work with the lender on clearing conditions. On day 91, write up a new contract - same loan. THEN order the appraisal, which must happen after 90 days.

2. Get the buyer to use a different loan type. Conventional loans, VA loans, and USDA loans do not have the 90 day flip rule.

3. Sell to a cash buyer. This will always work - but as they are few and far between, it would be tough to build a business on this.

In general, it's best to count on owning the house for at least 120 days. After you have reached the 90 day threshold, you will still need 3-4 weeks to close even if you have a buyer ready. Knowing this, you can bake those holding costs into your offer.

Flip Opportunity

629 Remshart St. Waycross GA. Offered at $47k. ARV $150k. Check it out. Details and instructions on the site.