Flipping Laws in Illinois

[Christopher McCormick]

Hello everyone,

Long time lurker, first time poster. I am slowly working through my first flip in Illinois and I'm hoping some of the experts here on this forum can expand on some flipping guidelines in this state. My realtor has stated that FHA won't close on a rehabbed home that you have held for less than 90 days, and that anything between 90 and 180 days the lender will require receipts for the improvements and work in order to justify the increase in the purchase price. The only items I can find online on this subject only reference FHA, such as this link:

http://hudgov.prod.parature.com/link/portal/57345/57355/Article/8336/Where-can-I-find-an-overview-of-the-FHA-Prohibition-on-Property-Flipping-guidelines

Is this an FHA specific requirement, or is this policy applied by all lenders in these types of transactions (buyer purchasing rehabbed home with a dramatic increase in price since last sale)? Am I missing anything here?

Any and all insight is much appreciated!

Kind regards,

-Rookie Chris