Owner occupancy clause and advice on FHA

3 Replies

Can I get the occupancy clause lifted for an FHA loan or should I try to sell? I recently closed on a property I intended to move in with my boyfriend as we are having our first child. Unforeeen circumstances have occurred and I will no longer be living with him and will not be able to afford to live in the house by myself while I am on maternity leave, so I will be moving back home. I do plan on living there when I return to work and secure childcare. Can I rent the property for the first year? The paperwork says I have to intend to reside there for the first 12 months and I don't want to commit fraud. Is there anyway to lift this clause or should I just try to sell? My intent was to reside there, but on my salary and not working during maternity leave I know I won't be able to. The house is solely in my name.

Contact your lender and explain the situation. They may waive the restriction based on the circumstances.

As long as you can document the unforeseen circumstance and your initial willingness to move in you should be fine (in the event you’re audited). You can keep records, mammograms, or other to document.

In the meantime you can do whatever you want with the property you’re now the legal owner. If you absolutely cannot fulfill the terms of the fha note.