Is house hacking illegal in some states?

Question

Hey there,

I have been diving into real estate and learning a lot and prepping myself over the past few months. I went from not knowing how to even begin talking or let alone knowing how to go about purchasing a home to being under contract on my first property. I am going to house hack it and the numbers work great and I have learned a lot throughout each step of the process. Since this comes up as discussion with friends, a friend of a friend who is from Michigan was adamant that this is illegal and no one else can live with you in the property for the first year. I have no idea where this is coming from and no idea where she is getting this idea. Do laws vary from state to state? Just curious and want to learn more.

Thanks!

Jon Holdman · Answer

Some locales have limits on the number of unrelated people in one property.  That might prevent you buying a big house and having a half dozen roommates.  But a blanket "nobody but you can live in the house for a year"?  Never heard of that.  Don't believe it.  In a case like this, ask for a citation of the specific law that makes this illegal.

Andrew B. · Answer

your friend has no idea what he is talking about. local zoning laws can limit this. for example you would likely run into problems if you had a non-permitted duplex, or had a large number of unrelated individuals living there. what he is likely referring to though, is the owner occupancy requirements of your mortgage which require you to use it as a primary residence for the first year. he has conflated this in his mind to mean, only you can occupy it for your first year. this makes no sense. as long as you use it for a primary residence, you are fine to get a roommate or rent out another unit if it is a duplex. in the future, don't take real estate advice from this friend.

Jon Holdman · Answer

Greeley also has those limits if you get more than a few blocks away from the UNC campus.  Its tied to zoning and I was told (by planning and zoning department) that landlords that follow the rules will call and report those that don't.

Who knows where this stuff comes from?  We live in an age where truth is fluid.

Nick Annis · Answer

Yea I am not concerned about it at all, but I am curious where this idea is coming from? For example I understand what you're saying about the locales having limits such as in Fort Collins, but other than that I don't know where this idea is coming from?

Is house hacking illegal in some states?

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