How soon after financing a home with an FHA loan can it be sold?

The FHA has anti-flipping rules that would prevent an FHA borrower from buying a home to flip, but there are some exceptions to the FHA’s anti-flipping requirements. In general, FHA loan rules don’t have much to say about selling the property as long as it was purchased and occupied in line with FHA loan requirements.

In its restrictions on resale, FHA states that "a property that is being resold 90 days or fewer following the seller’s date of acquisition is not eligible for an FHA-insured mortgage.” Homes that were purchased between 90 and 180 days prior to the sale may be subject to a second appraisal which the borrower is not required to pay for. The second appraisal may also be required in cases where there is a 100% markup on the cost of acquisition of the property in the previous transaction.

Some exceptions to these restrictions include properties acquired by an employer in connection with an employee relocation, properties acquired through inheritance, and properties owned by non-profits that were purchased with HUD approval, among others.

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