Can you use a FHA loan to fund a fix and flip?

[Faiz Kanash]

A curious question of mine since I'm looking through some options for funding... But could you apply for a FHA loan to purchase a habitable property that you intend to fix and sell after 3 months? Could FHA fund a fix and flip at all, especially if you don't intend on living in the property for more than 6 months?

thank you! 

[Katherine Blazer]

It is not what these loans are designed for. So they are going to lend based on the lower of the appraised value or purchase price. The FHA Appraisal also has pretty specific sections including: No damage to the foundation, roof, or exterior, Safe access to the premises, Working utilities, No exposed wiring or other electrical systems, A permanent heating system that provides sufficient heat for the home, No peeling or chipping lead-based paint, Access to clean water, No termites or other wood-destroying insects, Access to, and ventilation in, attics and crawlspace, No soil contaminants, such as from a damaged underground storage container, No safety hazards, such as stairs without handrails, Compliance with local zoning regulations.