How Long Until You Can Sell Your Home with an FHA Loan?

How long after the purchase of your home with an FHA mortgage must a borrower wait before selling the property?
In general, FHA loan rules do not restrict the borrower’s ability to freely sell the home. The FHA loan program DOES restrict what an FHA mortgage will buy in such cases--you may not be able to purchase a home with an FHA mortgage unless it has been owned for a certain amount of time and the seller is the owner of record.
FHA loan rules in HUD 4000.1 state that the lender is required to verify that the seller is indeed the owner, and also to check the date of the owner’s acquisition of the real estate.
FHA Loan Rules Include a Time Restriction on Transfers of Title
Check out what HUD 4000.1 says about buying real estate with an FHA mortgage and the lender’s requirement to compare the date of purchase by the current ownere versus the date of execution on the sales contract for the FHA mortgage:
“FHA defines the seller’s date of acquisition as the date the seller acquired legal ownership of that Property. FHA defines the resale date as the date of execution of the sales contract by all parties intending to finance the Property with an FHA-insured Mortgage.”
And that resale date is crucial for loan approval.
FHA Appraisal Issues Connected With Resale Dates
There are certain exceptions to the rule you’re about to read, but in general FHA borrowers should know that homes resold 90 days or less after purchase cannot be financed with an FHA mortgage loan.
That does not restrict the owner from trying to sell, but it does restrict the borrower who wants to buy. The sale of real estate 91 days after purchase (up to 180 days after purchase) requires a new appraisal if the resale price is 100% or more above the original cost of the property. This required appraisal cannot be charged to the borrower.
How long before you can sell your home purchased with an FHA mortgage? The answer is really, whenever you have the need. But depending on circumstances you may find your ability to sell is more limited in the first 90 days of ownership. The FHA takes a dim view on flipping when it comes to single-family home loans, because these mortgages are intended to help people find affordable homes to live in rather than for the purchase of investments.
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