Short answer
Yes, with timing limits. Under HUD's rules, a home resold 90 days or fewer after the seller got title isn't eligible for FHA. The count runs to the date everyone signs the purchase contract. From 91 to 180 days, if the price is at least double what the seller paid, the lender needs a second appraisal from another appraiser, at no cost to you. Some sellers, such as banks, relocation companies and estates, are exempt.
Why does FHA have a flip rule?
HUD describes property flipping as buying a home and reselling it quickly, sometimes at a big profit with an artificially inflated value. The rule is meant to protect buyers and FHA from paying for value that isn't really there. It doesn't mean renovated homes are bad buys; it just sets timing rules.
How is the 90 days counted?
HUD counts from the date the seller acquired legal ownership to the resale date, which is the date all parties have signed the purchase and sale agreement for your FHA purchase. Closing doesn't have to wait; the contract does. If the contract is signed on day 90 or earlier, the home isn't eligible for FHA. The lender checks a 12-month chain of title to confirm the dates.
When is a second appraisal needed?
If the contract is signed between 91 and 180 days after the seller bought the home, and your price is 100 percent or more above what the seller paid, the lender must get a second appraisal from a different appraiser. If the second value is more than 5 percent lower than the first, the lower value is used. The cost of the second appraisal can't be charged to you.
Which sellers are exempt?
- Employers or relocation companies selling a home bought when an employee relocated.
- HUD selling its own foreclosed homes, and other federal agencies selling under their programs.
- HUD-approved nonprofits reselling homes bought from HUD with resale restrictions.
- Sellers who inherited the home.
- Banks and other state and federally chartered financial institutions, and Fannie Mae and Freddie Mac.
- Local and state government agencies.
- Builders selling a newly built home.
For bank-owned homes, see buying a foreclosed or bank-owned home.
What should I do when I find a flip I like?
- Ask your real estate agent when the seller bought the home and for what price. The registry of deeds also shows recorded sales; see how to look up a deed.
- If it's close to the 90-day mark, a contract signed a few days later can make the difference.
- Ask for permits on the renovation work. See unpermitted work when buying a home.
- Still get a home inspection; fresh paint can hide older problems.
FHA's rule doesn't apply to conventional loans, which have their own appraisal reviews. See comparing loan programs.
Sources
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Restrictions on Property Flipping
- 24 CFR 203.37a, Sale of property (Cornell LII)
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.