FHA lending guidelines derailing my first flip

[Rob Brewer]

Hey BP friends! First let me send a shout out to J Scott for the podcast he did with BP (episode #10 I believe). I thought you were describing my first flip!!

Here's my dilemma. Wholesaler purchased a home 4/4/13, I bought the home from wholesaler on contract and transferred title to my company 5/24/13. During that time I rehabbed it. I accepted an offer after only 7 days on the market! I was excited to say the least!

Buyers are using FHA financing as they don't qualify for conventional financing. Their lender says they can't underwrite the mortgage because there have been multiple title transfers and HUD rules say

"no pattern of previous flipping activity for the subject property as evidenced by multiple title transfers within a 12 month time frame".

How to other wholesale deals get around this issue? Do you just not sell to FHA financed buyers?

Thanks!