Be sure to review the FHA notice for a complete list of conditions to obtain the waiver. Here are a few highlights:
- All transactions must be arms-length, (A transaction among parties each of who acts in his or her own best interest), with no identity of interest between the buyer and seller or other parties participating in the transaction.
- The seller holds title to the property.
- No pattern of previous flipping activity in the past 12 months.
- The property was marketed openly and fairly.
- When the sales price is 20% or more over the seller’s acquisition cost, the lender must:
- Justify the increase in value (i.e. second appraisal, etc.)
- Lender to order a property inspection and provide the report to the purchaser before closing. The lender may charge the borrower for this inspection.
- Additional specific requirements for the inspection are in the notice.
- Only forward mortgages, not reverse mortgages are eligible for the waiver.
Below are links with more information on the FHA waiver and the conditions that must be satisfied to get the waiver.
Press Release of FHA Waiver of 90-day rule
Conditions for FHA Waiver of 90-day rule
