Answer
The only exceptions to the FHA property flipping rule are:
1. properties acquired by an employer or relocation agency in connection with the relocation of an employee
2. re-sales by HUD under its Real Estate Owned (REO) program
3. sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies
4. HUD REO properties that were purchased by nonprofits at a discount with resale restrictions
5. sales of properties that are acquired by the seller through inheritance
6. sales of properties by state and federally-chartered financial institutions and government sponsored enterprises
7. sales of properties by local and state government agencies, and
8. sales of properties within Presidentially Declared Disaster Areas.

Any subsequent re-sales of the properties must meet the 90 day threshold in order for the mortgage to be eligible as security for FHA insurance.

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