FHA Flip?

[Christopher P.]

How does flipping a FHA home after 90days work? do I need to pay off the loan first before selling or can I sell and pay it off?

[J Scott]

I assume you mean that you purchased a home with FHA financing and now you want to resell it?

Assuming that's the case, FHA will generally require you to occupy the property as your primary residence for 1 year before you can sell. Under certain situations ("special circumstances") you can get around the 1-year rule, but you must have had the intention of living there for 1-year when the property was purchased.

Unless it's clear that you have a special circumstance where you have to move after 90 days, I would recommend speaking with a good real estate attorney before deciding to sell.

All that said, when you sell, the proceeds from the sale are generally used to pay off the loan -- if the sale proceeds don't cover the full loan amount, you'll need to provide the difference out-of-pocket.