Dumb Question: what if you house hack and live elsewhere?

Question

Lets say I were to purchase a 3 unit home, and I were to set my primary residence to one of the units, but I lived elsewhere....is this illegal? I’m not trying to break any laws, was just curious.

Are there any consequences if 2 units get rented out, and the 3rd just sits there empty?

Sorry for the dumb question!

Marsha Rost · Answer

@Parth Patel

If you officialy change your address to the mentioned property (on your driver's license) and you put and not have it look vacant (keep it somewhat furnished) you should be fine. The most important thing is to have your mailing address, vehicle registrations, credit card billing address etc changed to that property. Anything financial must be linked to that property.

Marsha Rost · Answer

@Parth Patel

But the terms on most mortgages ask that you live there for a year. After that you are free to rent it out. So if you can try living there for 12 months, It might be worth it.

Parth Patel · Answer

@Marsha Rost ahh I see thank you!

Marsha Rost · Answer

@Parth Patel

I should add though if you are caught and have no good reason for not actually living there it will be mortgage fraud for you and your property will be foreclosed.

Parth Patel · Answer

@Anthony Wick I live in our summer home, which is way nicer than anything i’d buy as a rental property. I was just looking to see if I could capitalize on a house hack while living where I currently am. Some people have advised against it though.

Anthony Wick · Answer

@Parth Patel

Sounds like you want to buy a place but maybe you’re crashing at a partners/friends house? So, you will “live there”, get your mail there, you just may not sleep there all the time? Sounds like you’re living there to me. Of course, I’m not a real estate attorney or the one giving you the loan, so.....

Parth Patel · Answer

@Anna Buffkin ahh I see, thank you for the input. Definitely not trying to do anything illegal haha.

Anna Buffkin · Answer

I believe is you take a out mortgage with the intent to deceive, its fraud.

Now if you intended to live in it and for some reason the plan change do to unforeseen circumstances that would be different.  For example, if you lost your job and had to take another one out of state right after you closed on a mortgage, the intent was not to deceive.

Parth Patel · Answer

@Theresa Harris ahh ok I see. I’m in a bit of a unique situation, so I was just exploring my options. I appreciate the input thank you!

Theresa Harris · Answer

If you are not planning on using it as your primary residence, you can get into trouble with your mortgage company.  The lower rates and deposit are associated with your living in it.

Dumb Question: what if you house hack and live elsewhere?

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