Answer
The term property flipping refers to a practice whereby recently acquired property is resold for a considerable profit with an artificially inflated value, often abetted by a lender's collusion with an appraiser.
1. The restrictions do not apply to a builder selling a newly built home or building a home for a borrower.
2. The sale must be by the owner of record.
3. Appraisers are required to analyze any prior sales of a subject property in the previous three years for one to four family residential properties.
4. If a property is re-sold 90 days or fewer following the date of acquisition by the seller, the property is not eligible.
5. A lender must obtain a second appraisal by another appraiser if:
the re-sale date of a property is between 91 and 180 days following the acquisition of the property by the seller, and
the resale price is 100 percent or more over the price paid by the seller when the property was acquired

FHA reserves the right to require additional documentation from a lender to support the resale value of a property if:
the resale date is more than 90 days after the date of acquisition by the seller, but before the end of the twelfth month following the date of acquisition, and
the resale price is 5 percent or greater than the lowest sale price of the property during the preceding 12 months.

For more information about property flipping (resales) and exceptions to the property flipping rule see Handbook 4155.2: 4.7 a-h.

For properties that do not meet the exception criteria, see the property flipping waiver at http://www.hud.gov/offices/hsg/sfh/currentwaiver.pdf (2/1/11-12/31/11)

While the waiver is designed to assist in the sale of excess inventory due to foreclosures, it is not limited to only foreclosed properties.