How far away from work can I use an fha loan?

Question

Is there a certain distance in miles or driving time that would disqualify me from buying in a certain area for using an FHA loan?

For example. About an hour away from where I work is an area that would be an excellent airbnb location after my one year residency.

I would love to get a solid property with a low dp but the distance from my job is my only concern with underwriting.

Jesse Rivera · Answer

Lender is going to want to see that your job is a reasonable commute from the house. What does reasonable mean? In LA it would be different than Fresno. It is up to the discretion of the underwriter. Start talking to lenders and see what they say.

Michael Dumler · Answer

@Ryan Cleary I have never heard of an FHA distance requirement. The only rule of concern is that you occupy the property as a resident during the first year of purchase.

David Avery · Answer

Nor have I, I would ask a Real Estate Broker or full time agent. It is a common question.

Daniel Hennek · Answer

There's no specific distance. If it's something like 40 miles plus then the underwriter will probably ask for a letter of explanation to determine how it's realistic that you are going to live in the property and commute everyday. If your explanation includes something to the effect of "I'll only have to do this for a year because then I'll be moving out" it might not go over well.

Simple answer is that you write a letter of explanation that is true and reasonable.

How far away from work can I use an fha loan?

How far away from work can I use an fha loan?

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