One criteria for a home being approved for an fha loan is that the seller owns the home for at least 90 days. The idea being that investors use FHA loans as a means to buy homes with low money down for the purchase of fixing up homes and reselling them quickly...marketing them for sale less than 90 days after he/she/the corporation purchased the home.
A challenge has been when home buyers find rehabbed homes that have just gone onto the market for sale and they want to purchase the homes as primary residence...not for the purchase of rehabbing and then reselling. In some cases sellers have put their homes on the market less than 90 days after purchasing the home and so buyers who intended on purchasing their homes with FHA loans have (a)often decided to continue their home search for an FHA eligible home (so the rehabbed homes have sat on the market for a long time) and some buyers (a)have had the patience to wait for the home to become "FHA eligible".
One of the highlights of the bill is that home owners who put their home on the market within 90 days to resell must have documentation justifying the sale price if it is 20% or higher than what the owner bought the home for (if within 90 days or less).
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
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