Flipping Requirements
• HUD has issued a Waiver of Requirements regarding transactions that are considered property flips. The
waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or
withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping"
where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to
those sales meeting the following general conditions:
• FHA Case Numbers must be assigned on or after February 1, 2010 and
• All transactions must be arms-length, with no identity of interest between the buyer and seller or other
parties participating in the sales transaction.
the Purchase Contract must be
executed on or after February 1, 2010
• In cases in which the sales price of the property is 20 percent or more above the seller's acquisition
cost, a second appraisal is required.
