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Lender Alerts

Lender Alerts

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Clarification for FHA’s Property Flip Waiver Guideline

Dear Licensed Partner,

In an effort to improve the quality of service and reduce the turn times, Sun West Mortgage Company, Inc. would like to re-iterate the details of the FHA Flip waiver program.

1. All transactions must be arms-length, with no identity of interest between the buyer and seller, or other parties participating in the sale transactions. Listing Agent and selling agent cannot be the same or a related party.

2. Seller must be an individual or an LLC. It may not be a corporation.

3. For LLC Seller, please note that the following additional documentation is required: 

  • Articles of incorporation
  • List of officers, directors, and shareholders
  • Certificate of good standing

The underwriter carefully reviews all of the docs to determine that there is NO relation between the LLC and either the mortgage broker, selling agent, or the borrower.

4. If the value increase is more than 20%, second appraisal is required with appraiser documenting the reasons for the increase in value.

5. Property inspection report must be ordered by Sun West Mortgage Company, Inc. Borrower must pay for the cost of the property inspection report which typically cost $300-$400. Inspection fee must be disclosed in the initial GFE. 

  • No intermediate transfer is allowed / no recent transfers to the Seller are allowed.
  • The program is set to expire December 31, 2014 and the expiration date applies to the date of Purchase Contract.

For additional information and guidance on the conditions of waiver eligibility, please refer to:

If you have any questions, please contact your Client Relations Manager at (855) OK-SUNWEST or (855) 657-8693. 


Sun West Mortgage Company, Inc.
18303 Gridley Road
Cerritos, CA 90703
Phone : (800) 453-7884

Equal Housing OpportunityThis information is provided to licensed wholesale brokers only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.