The flip rule requiring sellers to own a property for 90-days before selling to buyers obtaining FHA loans remains suspended for another six months.  The Department of Housing and Urban Development is waiving the rule to combat the effects of vacant and abandoned homes.

According to the HUD web site,

To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

• All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
• In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
• The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

The relaxed rule may be having some impact, but the benefits are more likely being enjoyed on a case-by-case basis.