How long to occupy if you purchase as an owner occupied house?

Question

Hey guys,

If you purchase a home a a 3.5% down primary residence home...how long do you have to occupy the residence before it can be converted to a rental?

Does it vary?

Carrianne Mucho · Answer

For any owner occupied financing, you will state your intent to occupy the home for at least 12 months.

Erik Hanson · Answer

I would occupy it for a minimum of 2 years. This way if you do put it as a rental you have 3 years to test the rental waters to see if its a good fit for you. If it isn't you can sell the property and keep a good chunk (if not all) the equity in the property tax free. As long as you have occupied a property for "2 of the previous 5 years" up to $250,000 for a single owner and $500,000 for a couple is exempt from capital gains taxes.

Erik

Jeremy P. · Answer

3.5% Down sounds like an FHA or 203K Loan.

Requirements are 12 months of owner occupy, you can only have 1 FHA Loan out at a time.

You will need to obtain conventional financing on the refi before trying to get another FHA for the next property

How long to occupy if you purchase as an owner occupied house?

3 Replies