On a property flipping transaction what date should be used to determine seasoning?

The eligibility of a property for a Mortgage insured by FHA is determined by the time that has elapsed between the date the seller has acquired title to the Property and the date of execution of the sales contract that will result in the FHA-insured Mortgage.   FHA defines the seller’s date of acquisition as the date the seller acquired legal ownership of that property.  FHA defines the resale date as the date of execution of the sales contract by all parties intending to finance the property with an FHA-insured Mortgage.  FHA's property flipping regulation 24 CFR 203.37a is available at  http://www.ecfr.gov/ 

For more information see Handbook 4000.1 II.A.1.b.iv.(A)(3)(b)(i) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04563