House hacking question

5 Replies

I bought our primary residence via FHA loan and in the papers it said we have to live there for a year... It has now been 2yrs and some months... So I was getting ready to buy another house with a conventional loan with 5% down.. making the 2nd property as primary and turning the 1st property into a rental... When I called a lender, they said this cannot be done and is considered a mortgage fraud... They said I have to have a good reason to transfer for the underwriters to approve it... I called my realtor and ask if there's any lender she might know who can approve me for the thing I'm trying to make... And after some calls and question, she said the same thing... Am I missing something? because I've heard in the podcasts where people where people did

@Mylene Mejia - Are you purchasing a larger house? I have never had any issues as long as the reason for moving makes sense (i.e. larger home, more rooms, closer to family, better schools, etc).

This shouldn't be an issue with a standard FHA loan. One of my rentals is financed under an FHA loan we got when we moved into it.

Do you have secondary financing taken out at the time of purchase (a "soft" or forgivable second) or did you have some sort of down payment assistance?  If so, this could be your issue.  

I hadn't planned on it but I plan on most likely renting my home out (FHA) when I get to the year or two mark. Just don't love the area.

Justin Tahilramani it's basically similar... The 2nd house is bigger by 200 square feet and has a bigger master bath.. It's both 3/2 and in the same zip code...

Scott England I don't have any liens or financing taken on it... Just the same fha loan that was made to mortgage it...

Thank u for the replies.... I guess I'll just look for something larger...

@Mylene Mejia  What you are looking to do is perfectly normal and not fraud. You have meet the FHA loan requirement and will occupy the new property. Nothing wrong there. Goes to show that most mortgage banker and lenders don't know what they are talking about and are not investor friendly.

Upen Patel, Mortgage Banker

Federal NMLS# 1374243

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here