! Real estate or property investment. Home mortgage loan rate. Saving money for retirement concept. Coin stack on international banknotes with house model on table. Business growth background Flipping homes can be a lucrative venture, but it comes with unique challenges, particularly in financing. One critical factor investors and buyers need to understand is the Flip Rule in lending. This rule, implemented by certain lenders and influenced by FHA regulations, affects how quickly a recently purchased property can be resold or refinanced. In this blog, the TJS Team, led by Tina Jingru Sui, breaks down what the Flip Rule is, how it works, and how it impacts buyers and investors in Atlanta and suburbs like Duluth, Suwanee, Dacula, Buford, Alpharetta, and Johns Creek. [](https://www.youtube.com/watch?v=6-7eQlZoIM8) Flip Rule in Lending | Real Estate Tips - YouTube [](https://www.youtube.com/channel/UC_xZUHZXKo0bSLj8sqaSrEw?embeds_referring_euri=https%3A%2F%2Fwww.tinasui.com%2F) 亚特兰大隋静儒地产团队Tina Sui-Atlanta Realtor-TJS Team 17 subscribers [Flip Rule in Lending | Real Estate Tips](https://www.youtube.com/watch?v=6-7eQlZoIM8) [](https://www.youtube.com/embed/6-7eQlZoIM8?enablejsapi=1&=1&playsinline=1) 亚特兰大隋静儒地产团队Tina Sui-Atlanta Realtor-TJS Team Search Watch later Share Copy link Info Shopping Tap to unmute If playback doesn't begin shortly, try restarting your device. More videos ## More videos You're signed out Videos you watch may be added to the TV's watch history and influence TV recommendations. To avoid this, cancel and sign in to YouTube on your computer. CancelConfirm Share Include playlist An error occurred while retrieving sharing information. Please try again later. [ Watch on ](https://www.youtube.com/watch?v=6-7eQlZoIM8&embeds_referring_euri=https%3A%2F%2Fwww.tinasui.com%2F) 0:00 0:00 / 1:12 •Live • [](https://www.youtube.com/watch?v=6-7eQlZoIM8) **1\. What is the Flip Rule in Lending?** The Flip Rule refers to guidelines that restrict how soon a home can be resold or refinanced after purchase. FHA 90-Day Flip Rule: FHA loans typically require at least 90 days between the seller’s purchase date and the buyer’s contract date. Lender-Specific Rules: Some lenders impose additional restrictions, such as requiring appraisals or documentation for homes resold within six months. The goal of these rules is to prevent fraudulent transactions or inflated appraisals often associated with property flipping. **2\. How the Flip Rule Affects Buyers** FHA Buyers Delayed Transactions: Buyers using FHA loans may not be able to purchase a flipped property until the 91st day after the seller’s acquisition date. Second Appraisal Requirement: Properties resold within 91-180 days may require a second appraisal if the sale price is significantly higher than the original purchase price. Conventional Buyers Fewer Restrictions: Conventional loans often have more flexibility, but some lenders may still scrutinize flipped properties. The TJS Team ensures buyers are aware of these rules when considering recently flipped homes. **3\. How the Flip Rule Affects Sellers and Investors** Holding Periods Investors should be prepared to hold properties for at least 90 days if targeting FHA buyers, which are common in markets like Dacula and Buford. Appraisal Challenges Sellers must justify significant price increases with documentation of repairs and improvements to avoid appraisal issues. Marketing to Conventional Buyers Investors may choose to focus on buyers with conventional financing to avoid delays caused by the Flip Rule. **4\. Exceptions to the Flip Rule** Not all transactions are subject to the Flip Rule. Common exceptions include: Foreclosure Sales: Properties acquired through foreclosures or short sales may not face the same restrictions. HUD Homes: Homes sold by the Department of Housing and Urban Development (HUD) are exempt. Non-FHA Loans: Conventional loans and cash purchases typically don’t adhere to FHA Flip Rule requirements. **5\. Tips for Navigating the Flip Rule** For Buyers Check the Seller’s Timeline: Confirm the seller’s purchase date to ensure compliance with lending rules. Work with Experienced Agents: The TJS Team can identify potential red flags and guide you through financing requirements. For Investors Document Repairs: Maintain detailed records of all improvements, including receipts and before-and-after photos. Plan for Delays: Anticipate a holding period if targeting FHA buyers, especially in areas like Johns Creek and Suwanee. **6\. How the TJS Team Can Help** Understanding the Flip Rule can be complicated, but the TJS Team makes it simple by: Educating Buyers: We ensure you know what to expect when purchasing a recently flipped property. Guiding Investors: Our team helps investors navigate timelines and documentation requirements to maximize profitability. Connecting You with Lenders: We work with trusted lenders familiar with local markets like Duluth and Alpharetta who can provide tailored advice. Whether you’re a buyer interested in a flipped home or an investor planning your next project, understanding the Flip Rule is essential. Contact the TJS Team, led by Tina Jingru Sui, for expert advice and personalized support in Duluth, Suwanee, Dacula, Buford, Alpharetta, Johns Creek, and beyond. **Let’s simplify your real estate journey today!** [Exit mobile version](https://www.tinasui.com/understanding-the-flip-rule-in-lending-real-estate-tips-from-the-tjs-team/?noamp=mobile)
