FHA house hack ... primary residence ??

Question

Quick question ... looking to invest in a duplex, FHA house hacking is the go to first investment. I currently have a mortgage, any way I can claim primary residence in my potential rental property?

Jacob Sampson · Answer

Depends on your comfort level with mortgage fraud.

Jerry Padilla · Answer

@Timothy Albright

Even if you intend to occupy, going from a Single Family to a Multi-Family with FHA, it is going to take some convincing to an underwriter that you intention isn't to be doing exactly what it looks like you are stating. They are going to see it as you are trying to get into an investment property with little money down.

There are other ways of coming up with a down payment to get an investment property, although not the most ideal as savings, but better than committing fraud.

The down payment for an investment property needs to be seasoned in your account for a minimum of 60 days, without being questioned on the source of the money. This is a much better route to go than mortgage fraud. Where you source the unsecured money from, prior to the 60 day seasoning is up to you.

Acceptable sources of down payment that don't need to be seasoned are: pulling out equity on another property - your primary, savings, checkings, retirement funds, stocks, bonds, life insurance policies with cash value.

Todd Powell · Answer

@Timothy Albright FHA is definitely not trying to help you amass a RE portfolio, so I think it may be difficult. However, my son bought a 4 plex via FHA 5 years ago with 3.5% down and house hacked in. Then a year later, he found another 4 plex a few cities away and managed to pull off another FHA 3.5% loan again! Honestly, I think he got lucky and had to convince the underwriters that this was closer to his job. Its possible, but you better have a sales pitch down.

Andrew B. · Answer

The only trick is to actually make it your primary residence. If you enter into an FHA contract without intending to truly live there, then that is the textbook definition of mortgage fraud.

Donald SaintVal · Answer

If you are not going to live there, cannot LEGALLY claim residence. The only way around this is if you partner with someone on the loan and they themselves are a primary resident

FHA house hack ... primary residence ??

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