Moving out of Owner-Occupied FHA property

3 Replies

Hello BP, I have been trying to find an answer to this question so now I turn to the forums.  My question is this:

If I move out of a FHA financed property after the 12 month requirement, do I need to do anything with the loan as far as refinance or update the terms or the like? The short term plan is to purchase a SFR or Multifamily property that I can house hack to decrease my living expense and save money for the next property. I will be going into this with my fiancé, the first property we're doing under my name and the next will be under hers. We will rent out the first property once we moved into the 2nd property. From there we will continue to save and work on acquiring the next property and build from there. My 5 year goal from the start is to be in a position to step down to part time at my job (the benefits are great and the work is rewarding).

Thanks in advance!

AFAIK, you do NOT need to do anything other than prove, if the government looks into the details of why you moved, that the reason you're moving is because you "upgraded" in some way on the new property (more square footage, additional bedrooms, better school system/neighborhood, etc.)

If you're not moving for those reasons, then yeah, I would refi-out to a conventional loan. You can't cash-out refi with an FHA backed loan, but after refinancing into a conventional, you'll save some on mortgage insurance and if you have any equity in the property you may be able to get a HELOC and use that to fund other deals.
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