HUD 90 Day Property Flipping Waiver

Monday, 31 January 2011 15:17

Below is a summary of the HUD 90 Day Property Flipping Waiver that you can view in its entirety here:  http://www.hud.gov/offices/hsg/sfh/currentwaiver.pdf  

• The waiver is extended without change
• The seller’s acquisition cost has been further defined as closing cost, prepaid costs, commissions and the actual purchase price of the property. It expressly excludes repair or renovation cost.
• An appraisal used to justify the increase in the selling price above 20% must

1. be an FHA appraisal ordered by the lender
2. will not be entered into FHA connection
3. may not be paid for by the buyer

• An inspection when required

1. May be ordered by the lender or borrower
2. May be paid for by the borrower
3. Only health and safety repairs are required
4. A final inspection must be performed after repairs of these items