Anyway around FHA owner occupancy

7 Replies

hello all,

I'm a newbie. I have a single family home 4 bedrooms and I'm renting out two rooms. My mortgage is 1700 they Are paying me 1800. Great situation!! I just bought a town house for 170k using FHA but I would much rather rent it out. Is it anyway to do this? Heard I had to live in it for at least a year? I want to stay in my single family.

Ummm, no. FHA loans are for owner-occupants. You have to sign an addendum as part of the financing arrangement indicating that you intend to occupy the residence. If you don't intend to occupy the residence at the time of purchase and use an FHA loan, you commit mortgage fraud.

There are ways out of the 1-year occupancy. You will have to find the paragraph in your FHA documentation. I don't recall where exactly it is, but there are a couple of outs, one of them being relocation for work. Go back and review yours to find out. Otherwise, just bite the bullet and do what you signed up to do... the FHA loan is blatantly an owner-occupancy loan.

unless there are exceptional circumstance beyond ones control one has to live there!

I do recall alot of my FHA buyers telling me the FBI showed up at their door asking questions about the previous owner roundabouts 6-9mos after closing.

i always wonder if it was always about the previous owners, or more likely undercover way of checking if the holders of FHA loans are actually residing.

Thanks everybody I will live in my new home then rent out rooms in my old home. I've had good roommates so I will prob keep them in there as opposed to renting out my whole home to a single family. I'm just struggling with how to go from house 2 to 3 without the 25 to 30% down for an investment property 

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