If I buy a property with an FHA loan but have someone co-signing in order to use their income on the application, would the person co-signing also have to occupy the property for the first year, or can I be the only occupant?
Also, if I did a cash out refi to another FHA loan a year later would I have to occupy the property for an additional year, or would I be able to then move out.
1) no, but your down payment required is much higher
2) yes, you would have to occupy for another year
The best source for your options is your local fha lender.
A SFR - A family member can be a co-signer and you still do the low down payment option.
A MFR - All co-signers regardless of the relationship requires 25% down payment.
* Also note - a MFR you can use 75% of the rental income from the other units to help qualify for the loan. This is a much better route to go with a low down payment option still of 3.5%.
FHA Cash Out;
No co-signer is allowed for FHA Cash Out. The required LTV is 85%. You will still have the higher mortgage insurance requirements compared to Conventional.
Conventional cash outs you will not have mortgage insurance requirements. For a SFR primary home - 80% for SFR and 75% for a MFR.
With either cash out option - you will have the requirement of living in the property for another year.
@Jerry Padilla I assumed a non family member, not sure why.
@Jerry Padilla great answers. However in this public uninformed forum. Careful that it’s not misused for straw buyer purposes