Contractor · Pittsburgh, PA · Member since 2014 · 885 posts · 359 votes
11y
I think they want you to stay in the home three of the last five years, unless their are extenuating circumstances ... and I don't think 'I feel like moving' counts ... it's things like new job, family issue, etc.
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y
No. With FHA you sign a document stating that YOU will owner occupy for 1 year. If you break that agreement you are committing mortgage fraud. Just wait the extra 6 months. They typically check this by watching your insurance. If you move it to a liability policy for tenants they gotcha!
Vero Beach, FL · Member since 2015 · 38 posts · 7 votes
11y
I am in Florida so if I stay 1 year then it should be ok? Or do you think I should just do the convential loan because it's only 60,000 and I want to use the FHA loan for my long term home definitely
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y
@Jeremy Pace I wasn't talking to you! We posted at the same time. I'm not that big of an *** to just tell you no. Lol
I don't know how often you can use FHA loans (You may very well be right!)
I was more talking about the can I use an FHA mortgage and then "decide" to rent it out 6 months later even with the requirements. I personally wouldn't risk the mortgage fraud issue/charges. I'm all for operating above board. Plus asking this question on a public forum using your real name could bit you if you choose that route regardless of our advice.
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
11y
"
No Limits to Taking Out FHA Loans
Provided you have met all the rules and criteria, you may take out an FHA loan as often as you wish. There are a few restrictions with regard to earlier FHA loans. You must plan to live in the home with the new FHA-backed mortgage, and you must not be in default on an earlier FHA loan or otherwise owe the FHA money. You also must have at least 25 percent equity in your most recent FHA loan. Your private lender and your state may have other requirements as well."
thanks for the clarification ... I had that stuck in my mind for some reason, maybe it was the first-time home buyer credit from a few years ago?
I think you were thinking of the tax liability of your personal residence. The financial gain on the property is still tax free if you lived in the house two of the previous five years and it was your personal residence during those two years.
Rental Property Investor · Syracuse NY · Member since 2013 · 83 posts · 16 votes
11y
Don't do FHA, you will have mortgage insurance for the life of the loan... as opposed to other conventional loans in which it drops off after you reach either 75% or 80% LTV, from my understanding...