Can I do an fha loan still?

Question

Very simple. What is stopping me from buying a house with an fha loan that I don’t live in?

I am all about ethical. I know you have to live in it for a certain amount of time.

Is there a strategy to still have lower down payment and not live in it.

Do the banks really care that you live in it?

Any info helps.

Thank you

Andrew B. · Answer

@Jonathan Beemer yea...it’s not like breaking a promise to a friend. Buying a property with an owner occupied loan when you have no intention to live there is mortgage fraud. You can go to jail, and while most people wouldn’t get caught, banks do have ways to figure it out.

Jonathan Beemer · Answer

@Bob Okenwa ok so I wasn’t aware that it is actually mortgage fraud. That was what I was concerned about.

I have the down payment for investment properties however I would love to spread it out rather than just one.

So now I know. Mortgage fraud. Thank you.

Jonathan Beemer · Answer

@John Warren ok so I wasn’t aware that it is actually mortgage fraud. That was what I was concerned about.

I have the down payment for investment properties however I would love to spread it out rather than just one.

So now I know. Mortgage fraud. Thank you.

Bob Okenwa · Answer

@Jonathan Beemer

I'm assuming you're looking in Broken Arrow OK, and from what I know about the area, homes there aren't very expensive so saving the 15%-25% down shouldn't take too long. I'd try to find a lender that will fund an investment loan at the lower end of the down payment spectrum. Mortgage fraud is typically a felony isn't worth it as you'd potentially be doing more damage to your investment career than helping it.

John Warren · Answer

@Jonathan Beemer if you are using a low down payment loan, then you are supposed to intend to occupy the property. It doesn't make sense to commit mortgage fraud just to pick up a property. If the down payment is the problem and you don't want to owner occupy, just take some extra time to save up and become a regular 25% down investor the right way.