FHA rules on flipping of homes has evolved.

1. FHA flipping policy
In an effort to stimulate repairs and sales in neighborhoods hard hit by the mortgage crisis and recession,
the FHA waived its standard prohibition against financing short -term house flips. Before the policy change,
if you were an investor or property rehab specialist, you had to own a house for at least 90 days before
reselling — flipping it — to a new buyer at a higher price using FHA financing. Under the waiver of the
rule, you could buy a house, fix it up and resell it as quickly as possible to a buyer using an FHA mortgage
— provided that you followed guidelines designed to protect consumers from being ripped off with hyper -
inflated prices and shoddy construction.