FHA owner occupied duplex, house hacking

5 Replies

I have a question that has never come up. If a person uses an FHA loan to qualify for an owner occupied duplex, is it legal to not only rent out the other unit, but also rent out one of the bedrooms in the unit that the owner is living in for the minimum of one year under FHA guidelines. And after one year the owner can move out and rent out the entire unit that the owner was living in? Thank you in advance.

Hey Shawn, my first property was a multi family which i financed through an FHA loan. I have tenants in the bottom unit as well as a roommate in mine. As long as its owner occupied, you're good!

The lender will not use that roommate to qualify you for the loan, however.

Yes, as long as you live there. I asked my lender about this because I just did this very thing. I bought a fourplex using FHA financing last year. I had a tenant for the bedroom in my unit that had a one-year lease from 11/1/15 - 10/31/16. He and I are both moving out at the end of this month, and I already have a tenant in place for the whole unit moving in 11/1/16.

Great. So if there's already a tenant in both units does one still have to move out or can their lease be terminated as per FHA guidelines and create a new lease where the can still live with me? Yeah I hate kicking people out especially if they are good tenant.

Any ideas are welcome here that are legal and ethical.

Thank you for the information guys I really appreciate it.

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