FHA/VA One Year Owner Occupancy Requirement

[Leonard Lamb]

Why are occupancy requirements for owner occupancy set at one year.  Is this federally mandated, legal precedence or other reason?   

Please no guesses.

[Christopher Phillips]

@Leonard Lamb

No guesses:

FHA regulation 4155.1 4.B.1.a Occupancy Restrictions: Except as otherwise stated in this handbook, FHA's single family programs are limited to owner-occupied principal residences only.

FHA regulation 4155.1 4.B.2.a Definition of a principal residence: A principal residence is a property that will be occupied by the borrower for the majority of the calendar year.

Note: You must have the intent to occupy the residence for at least one year and will sign an affidavit at closing stating you agree to that principle.

The VA loan program has the same requirement that the borrower certify that they intend to occupy the residence.