• 90 Day Flipping Policy Waiver: Effective February 1, 2010, HUD has issued a waiver of the 90 day rule (flipping rule) that applies to sellers other than HUD and exempt entities. At this time, we can accept properties if the contract of sale for purchase is executed within 90 days of the prior acquisition by the seller under the following circumstances:
The transaction must be arms-length with no identity of interest between the buyer and the seller or other parties in the sales transaction.
The seller must hold title to the property at the time of the purchase contract.
LLCs, corporations or trusts that are serving as sellers must be established and operated in accordance with applicable state & Federal law.
No pattern of previous flipping activity exists for the subject property, as evidenced by multiple title transfers within a 12 month time frame.
The property must be marketed openly and fairly via MLS, auction, FSBO offering or developer marketing (any sales contracts that refer to an “assignment of contract of sale” which represents a special arrangement between seller and buyer may be a red flag).
The sales price of the property must be less than 20% above the seller’s acquisition price. We are not accepting the additional HUD waiver conditions for increases of 20% or more at this time.
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