If you have ever purchased a market-rate or foreclosure property for a quick fix and flip, there is a good chance that you have run into problems with FHA financing. Until now, FHA would not insure any financing on a property that had already sold within the last 90 days. And since so many buyers are using FHA to finance their homes these days, that is an issue. With a decent sized crew on a smaller property, this timetable required some owners to sit on vacant properties while they seasoned. But as of February 1, 2010 that will no longer be the case.
Due to the current glut of foreclosures on the market, FHA has released a waiver to their current seasoning guidelines for at least one calendar year. Restrictions will still apply to ensure that the program is not abused, but if you are doing legitimate work on a property these restrictions should not pose a problem.
For more on this rule change, check out the official waiver from HUD.