Can I use an FHA loan to buy an Opendoor home?
Yes, Opendoor accepts FHA loans. However, not every Opendoor listing is FHA-eligible right away due to a federal rule about property resale timing. Here is what you need to know before you apply.
What is the 90-day flip rule?
FHA guidelines require that the seller has owned the property for at least 91 days before it can be resold to an FHA buyer. This is known as the 90-day flip rule.
Because Opendoor buys homes and resells them, some listings may not yet meet this 91-day ownership threshold. If a home was recently purchased by Opendoor, you may need to wait before your FHA loan can be used on that property.
How to check if a home is FHA-eligible
Access the FHA-eligibility information on www.opendoor.com/makeoffer and enter in the property address. The FHA-eligibility information will be located on the right-hand side, under the active offer information.
You can also ask your lender to verify FHA eligibility for a specific property before submitting your offer. Your lender can check the ownership timeline and confirm whether the 90-day requirement has been met.
Tip: If a home you love is not yet FHA-eligible, check back in a few weeks. Once Opendoor has owned the property for 91 days, FHA financing becomes an option.
FHA inspection and appraisal requirements
FHA loans come with stricter property standards than conventional loans. Here is what to expect:
- FHA appraisal: An FHA-approved appraiser will evaluate the home's market value and ensure it meets HUD's minimum property standards. This includes checking for safety hazards, structural soundness, and adequate utilities.
- Required repairs: If the appraiser identifies issues — such as peeling paint, missing handrails, or roof damage — those repairs may need to be completed before closing.
- Timeline impact: FHA appraisals and required repairs can add time to your closing process. Plan accordingly when setting your preferred closing date.
How FHA differs from conventional loans
| Feature | FHA Loan | Conventional Loan |
|---|---|---|
| Down payment | As low as 3.5% | Typically 3-20% |
| Credit score minimum | Usually 580+ | Usually 620+ |
| Mortgage insurance | Required (MIP) | Required if under 20% down (PMI) |
| Property standards | Stricter (HUD standards) | Less restrictive |
| 90-day flip rule | Yes | No |