(FHA Loan) can I also live somewhere else?

Real Estate Agent · Houston, TX · Member since 2017 · 35 posts · 34 votes

Hi everyone Quick question. I know if I get an FHA Loan it must be my primary residence for a year but I was wondering if I could also live somewhere else? I'd have all my stuff in my property but also share an apartment with my girlfriend. Ideally I'd just move into the duplex with my girlfriend but she does not want to live on that side of town so I was thinking about occupying both? Does anyone have any experience with this? If so let me know!

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Mindy JensenPro Member

BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes

@Cristian Samayoa , you have received extremely bad information here.

Telling your loan officer that you will live in the property as your primary residence while actually not living there or even intending to live there is mortgage fraud, and it is a felony.

The FHA loan is for owner occupants who intend on living in the property for at least one year.

@Tavaris Little , @Account Closed.

[email protected]Podcast Guest on Show #261

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Quardell D Johnson
Member since 2018 · 5 posts · 1 vote
8y
Originally posted by @Robert Saunders:

Originally posted by @Quardell D Johnson:
Does the one year rule with FHA apply to duplexes as well? Say I wanted to purchase a duplex with FHA loan with 3.5% down. I occupy one side and immediately rent out the other side. One year later, can I move, say, back in with my mom and rent the other side I was previously occupying?
That is correct. You will not run into problems as long as one of the units is your primary residence.
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Quardell D Johnson
Member since 2018 · 5 posts · 1 vote
8y
Originally posted by @Robert Saunders:

Originally posted by @Quardell D Johnson:
Does the one year rule with FHA apply to duplexes as well? Say I wanted to purchase a duplex with FHA loan with 3.5% down. I occupy one side and immediately rent out the other side. One year later, can I move, say, back in with my mom and rent the other side I was previously occupying?
That is correct. You will not run into problems as long as one of the units is your primary residence.
but as far as moving out, as long as I've been there a year, will I have an issues moving back to my mom's, and renting the other side out? I'm asking, because, I didn't know if they required you to purchase another home or not
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Robert Saunders
Specialist · Broward County, FL · Member since 2015 · 52 posts · 22 votes
8y
Originally posted by @David Krulac:
@Daniel Lopez
After the first year you can move anywhere else, and rent out the FHA house for as long as you like. So on a 30 year FHA mortgage, you need to occupy the first year then you can rent it for the next 29 years while still having an FHA mortgage.
@Quardell D Johnson
If you go back to what @David Krulac said above, you won't be forced to sell the house or refinance after you move out. After having occupancy for at least a year, you would be free to move out and rent all units if you please. It just will no longer be your primary residence but will not negatively impact your loan. Generally speaking, you just wouldn't be able to qualify for an additional FHA loan at the same time you hold the other one (though there are exceptions).
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
8y
@Robert Saunders and you may qualify for other OWNER Occupied Mortgages on other properties. I wrote about somebody I knew who had 7 owner occupied mortgages all legal and fully disclosed.
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Robert Saunders
Specialist · Broward County, FL · Member since 2015 · 52 posts · 22 votes
8y
Wow @David Krulac, 7 OO mortgages? I typically hear the max is in the range of four or so. I'd love to read what you wrote, what was the name?
SN: I just listened to your podcast episode last week on my way to work; great stuff!!
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
8y
@Robert Saunders The Fannie & Freddie limit is 10 mortgages. Then you can get 10 more in the name of your spouse/partner, so you're up to 20 mortgages. then you can get "portfolio" mortgages which are kept in house at the lender and NOT sold to Fannie and Freddie. I've bought and sold over 900 properties for my own and have had many, many mortgages. Because I started with nothing, the first 11 propertis that I bought were essentially 100% financed in one way or another (one was FHA).
Glad you enjoyed my Bigger Pockets Podcast #82
David Krulac
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Cristian Aviles-Morales
Orlando, FL · Member since 2016 · 92 posts · 36 votes
8y
So now here's a question and not trying to game the system just trying to come up with a strategy.

If I financed a multi-family home with the FHA and rented out the rest of the units while living there, that's okay.

But, what if my wife were to stay at the SFH we have as her primary residence and I moved to one of the rental units for the 1 year time and slept/lived there and had all my bills for that property identified to me? Shouldn't that qualify?

And then after I "do my time" and live there for a year, I then have the privilege of moving back to my wifes primary residence.
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Samantha P.
Real Estate Investor · Glenwood, IL · Member since 2015 · 84 posts · 22 votes
7y
@Stephan Rehoric and @Cristian Samayoa, how did it go?
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Vijay Kumar
Member since 2019 · 1 post · 0 votes
7y
I would like some advice on my situation. I'm currently looking to buy a SFH with FHA loan. But I'm also in the process of changing my job which might be far from the area that I'm looking to buy the house at. So if I end up taking FHA loan over a SFH but rent out a 2 rooms & stay in the house for a year. But I will also be staying with my gf and be on her apartments lease. Would this cause a problem ?
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