HOD home financing. Traditional + FHA mortgage?

2 Replies


I am looking for any possible way to be able to classify myself as owner occupant in a potential HUD home so I can get my bid in before investors.

A few key points:

1. Wife and I bought our first home in march of this year. We used a traditional mortgage.

2. Found out our dream home/property is going to be on HUD sale in the near future.

So now my questions.. The traditional mortgage states that my current home will be my principle residence for atleast 1 year. Can I get another traditional mortgage and classify it as a second home?

Also, can I get a FHA loan and try and finance the HUD home as my primary residence? Is this mortgage fraud?

The goal would be to buy the HUD home and over the next few months, make it livable, then sell my current home and get back some equity. Any help would be greatly appreciated.

Edit: Indiana

If you lived in the first home with the intention of living there at least a year, then your dream home fell out of the sky, and you simply sell the first home (not rent it out).....no biggie. 

@Chris Mason can explain it more properly.

I would assume my home would have to be sold first In that situation. The only issue is, HUD took the property over middle of last month and there is no way to tell when it will be available to bid on, you know what I mean? It creates a lot of uncertainty.

Also, from what I've read on HUD properties, they go rather quick. Which makes me feel like I should get preapproved as soon as possible so I can be ready.

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