FHA 90 day seasoning for flips

[Brett K.]

I'm representing a seller who just remodeled a property.  He purchased it in Dec. 2016 but the deed wasn't recorded until about 30 days later.

The underwriter wants us to rewrite the contract with a new date, get a second appraisal at my clients (seller) expense, and postpone the closing. 

The underwriter states 90 days must pass from the time the deed was recorded from when my client (investor) purchased the property for the property to be eligible for the buyer to use FHA financing.

According to FHA guidelines, on page 146 (per HUD Handbook 4000.1 dated 12/30/16) it states it is from the time of "acquisition".   The deed clearly states the date of acquisition is more than 90 days ago but if you go on the local PVA website it shows the sale date is within 90 days because they use the date the PVA was updated.... not the date of the deed.

So I'm in a pissing match trying to get this thing to close without delay and avoid my seller having to pay another $400+ appraisal fee.

Have they issued a new guideline since Dec. 2016?

In practice do they use the date of recording even though the guidelines state date of acquisition?

Practical insight appreciated.

Thanks,