FHA Owner Occupied, when am I required to move in?

6 Replies

Hi All, 

If I use an FHA owner occupied loan to finance a 2, 3, or 4-plex property that has current renters and valid leases, when do I have to move in so that I do not violate the guidelines of the owner occupied loan?

Thanks everybody! 

I believe you have to intend to move in within 60 days. In order to accomplish this you can make having a vacant unit a stipulation of your purchase, or if there is a tenant on a month to month lease, you can give them notice to vacate when you take over. since the terms of the loan state you must INTEND to occupy, you are typically safe if something happens as long as you have proof you are making a good faith effort to get one unit vacant and move in. that being said, if all leases do not expire until next year, good luck convincing the loan broker you are going to move in. best bet in that case would eb to ask current owner to deliver with one vacant unti.

Originally posted by @Andrew B. :

I believe you have to intend to move in within 60 days. In order to accomplish this you can make having a vacant unit a stipulation of your purchase, or if there is a tenant on a month to month lease, you can give them notice to vacate when you take over. since the terms of the loan state you must INTEND to occupy, you are typically safe if something happens as long as you have proof you are making a good faith effort to get one unit vacant and move in. that being said, if all leases do not expire until next year, good luck convincing the loan broker you are going to move in. best bet in that case would eb to ask current owner to deliver with one vacant unti.

Thank you Andrew, this was great insight. 

60 days is requirement but you have to show paperwork what you have done to work out on valid lease agreement where you want to move in. You need paperwork which will show, you have work out with that tenant.