What is Seasoning in Real Estate?
Seasoning is the minimum amount of time a seller must own a property before selling it again—at least when FHA financing is involved. The rule exists to prevent fraud: back in the early 2000s, illegal flipping schemes involved lenders, agents, and investors inflating property values to pull equity before the house would inevitably foreclose. Seasoning periods eliminate that particular scam by forcing a waiting period between purchase and sale.
The catch? It affects legitimate flippers all the time in Spokane.
The 90-Day Rule: What It Actually Means
Here’s the rule: an FHA buyer cannot write a contract on a property until 90 days have passed since the seller acquired it. Period. Not “close,” not “start the process”—actually write the contract. The 90 days is measured from the date the deed was recorded, and it’s not waivable.
This doesn’t apply to conventional loans, VA loans, or cash buyers. Only FHA.
We’ve been on both sides of this. Early this year, we represented an investor who closed on a $160,000 flip on April 29th. By early July—about 65 days later—they had an FHA buyer ready to go. The buyer loved the property. But we couldn’t write the contract. We literally had to wait until late July for the 90 days to pass so the lender could even create the FHA file.
Once that file opened, the deal moved fast. The buyer’s offer came in at $220,000, and everything eventually closed. But those couple of weeks of waiting? That’s real.
The Price Cap in the First 90 Days
Here’s something a lot of people don’t know: within the first 90 days, FHA limits the sale price to 120% of the original purchase price. So if you bought for $160,000, you can’t sell it for more than $192,000 via FHA in that first window.
In our example, the investor hit the 90-day mark before that FHA offer came in anyway, so this didn’t apply. But it’s worth knowing if you’re planning a flip.
The Second Appraisal Rule (91-180 Days)
After 90 days but before 180 days, a second appraisal may be required—but only if the sale price is 100% or more above the original purchase price (meaning you’re selling for 2x what the previous owner paid).
In that case, FHA orders an independent second appraisal to verify the value jump. The seller cannot pay for this second appraisal; the buyer’s lender has to eat the cost. If the second appraisal comes in more than 5% lower than the first, the lender uses the lower value.
We’ve had this happen. It adds time, it adds friction, and it puts the investor on the hot seat to explain what improvements justify the price increase. But it’s navigable—it hasn’t killed any of our deals, though it’s definitely caused delays.
What About Conventional, VA, and Other Loans?
Conventional loans, VA loans, and Fannie Mae/Freddie Mac don’t have seasoning requirements at all. A buyer with conventional financing can write an offer the day after the investor closes. USDA loans are also cleaner on this front. The rule is FHA-specific, which is why you see the tension in our market.
The Spokane Flip Market Right Now
There’s a lot of flipping happening in Spokane as of 2026. Investors we talk to tend to stay under the $400,000 price point—they’ve found that properties are easier to resell in that range. Some take bigger risks going higher, but margins are tighter than they were a few years ago. That means fewer flips are hitting the 2x threshold that triggers the second appraisal.
The Real Takeaway
If you’re an investor planning a flip in Spokane, you need to account for 90 days before you can even accept an FHA offer. If you’re a buyer using FHA financing and you find a recently flipped home, seasoning rules might add a few weeks to the timeline.
But here’s the thing: it’s not the end of the world. We’ve navigated this scenario dozens of times. The key is communication. Your agent, the investor, and the lender all need to understand the timeline upfront. Once everyone knows what to expect, it’s just part of the process.
If you’re looking to buy, build, sell, invest, or develop in Spokane, and you’ve run into seasoning issues or want to understand how they might affect your deal, reach out. We’ve been through this.
Planning to buy, build, sell, invest, or develop in Spokane? If seasoning issues or flipping strategies are on your mind, get in touch. We’ve navigated this plenty of times and can help you plan.
Yes, they can write an offer. But the lender won’t create the FHA file until 90 days have passed from the seller’s purchase date. So the offer exists, but it can’t move forward until seasoning is satisfied.
Yes. Conventional loans don’t have seasoning requirements, so if you find a conventional buyer, you can close faster. This is one reason investors diversify their buyer pool.
Not for FHA—it’s a federal program. Idaho has the same rules. But each loan program (VA, USDA, etc.) has its own guidelines, so it’s worth asking your lender upfront.
