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FHA loans · 24 CFR 203.37aThe FHA 90-day flip rule: when a resold house qualifies for an FHA loan

For an FHA-insured loan the property must be bought from the owner of record, and the deal may not involve any sale or assignment of the sales contract (24 CFR 203.37a(a)) – so an assigned wholesale contract does not work. The clock runs from the seller's settlement date to the date the new sales contract is signed (the re-sale date). If that is 90 days or less, the house is not eligible for an FHA loan. Between 91 and 180 days it is generally eligible, but the lender must get a second appraisal if the price is 100 percent or more above the seller's purchase price. After 12 months the time limits end. Sales by HUD and other government agencies, banks and GSEs, approved nonprofits, relocation companies, and sales of inherited property are exempt (§203.37a(c)).

Seller's settlement → new contract signed

  1. 0–90 days

    Not eligible

    The property cannot get an FHA-insured loan (§203.37a(b)(2)).

  2. 91–180 days

    Eligible, maybe a second appraisal

    Required if the price is 100% or more over the seller's purchase price; the lender may also document rehab work (§203.37a(b)(3)).

  3. 91 days–12 months

    Eligible

    HUD may require more value documentation when the price is 5% or more above the lowest sale price in 12 months, by Federal Register notice (§203.37a(b)(4)).

  4. After 12 months

    Eligible

    No time restriction (§203.37a(b)(5)).

Exempt from the time limits (§203.37a(c))

  • HUD REO sales and other U.S. government agency REO sales.
  • Nonprofits approved to buy HUD homes at a discount with resale restrictions.
  • Property the seller inherited.
  • Sales by an employer or relocation company in an employee relocation.
  • Sales by state- and federally-chartered financial institutions and GSEs, and by state and local government agencies.
  • Federal disaster areas, only when HUD announces it by notice.

What the TC checks on an FHA deal

  • The seller's deed or settlement date (title commitment or sales history) against the contract date.
  • That the seller on the contract is the owner of record – not an assignee or wholesaler.
  • A contract signed on day 90 or earlier: the buyer needs another loan type or a later contract date.

Questions agents and buyers ask

What is the FHA 90-day flip rule?

A house resold 90 days or less after the seller's settlement date is not eligible for an FHA-insured loan, counting to the date the new sales contract is signed (24 CFR 203.37a(b)(2)).

Can an FHA buyer buy a wholesaled house with an assigned contract?

Not with an assignment: the property must be bought from the owner of record and the transaction may not involve any sale or assignment of the sales contract (24 CFR 203.37a(a)).

Does the 90-day rule apply to an inherited house?

No. Sales of property the seller acquired by inheritance are exempt (24 CFR 203.37a(c)(4)).

Related guides

In ClosingCode, add the 91st day after the seller's acquisition as a deadline on the deal – with reminders, it is a date you cannot miss when the buyer is using FHA.

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Source: 24 CFR 203.37a (eCFR, read October 25, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm, lender, title company or brokerage. Lenders and investors can add their own rules. This guide is not a substitute for the advice or services of an attorney.