House hack “seasoning period” - when can I live in another house?

Question

Hey all!

I live in NJ and I wanted to know when I can legally live in another property. I recently did an FHA refinance and am required to live in my current 2-family for at least 6 months. We closed in early November.

Therefore, I should be able to legally live in another primary residence by April (or is it May?).

My real question is if I am able to put offers on another home in January/February, assuming that I take 3 months to close (I’m not a cash buyer yet). So by the time I close, I can move into the new property without committing mortgage fraud. Or do I have to wait until 6 months to even put offers on a property?

Thanks!

Spencer Gartz · Answer

@Jobee Vincent Buenaventura as far as I’m concerned, there is nothing stopping anybody in this world from putting in offers on anything. As long as you’re maintaining that as your primary residence, you should be fine.

Are you sure that the contract says 6 months? Sometimes verbal numbers appear out of thin air! After buying my first property, I called the mortgage broker and asked a similar question. His response was “you can move whenever you want…I’d have a really hard time giving you another owner occupied mortgage before the first year.”

I haven’t done an owner occupied mortgage since, but I’d take a really close look at the contract before believing someone’s word about how long you have to live there. There could potentially be some clauses listing reasons why you could move sooner?

Nicole Heasley Beitenman · Answer

My understanding is the same. Confirm with your lender and agent, though.

Shawn Mcenteer · Answer

You can put offers in right now. The rules in place are for closing date.

Carini Rochester · Answer

Not a notion. Read your mortgage and/or promissory note and talk to your closing attorney if you want. I haven't read your documents. The chances that you signed something that says that you can't put in offers is right about zero, I would think.

Carini Rochester · Answer

Move after 6 months. Put in offers as soon as you want.

Jobee Vincent Buenaventura · Answer

@Shawn Mcenteer so I did an FHA refinance to get the 80% LTV. Because it’s an FHA, I was told by my lender that i refi’d with I was required to have my current property as my primary for at least 6 months. After that, I can move to another primary residence.

I just want to know if I can put offers on homes to become my new primary residence even before the 6 month. So by the time I close, I’m already out of that limitation.

Shawn Mcenteer · Answer

@Jobee Vincent Buenaventura this will depend on a few things a huge part will depend on who you talk to. For example most lenders will only tell you what you can or can't do based on their lending requirements; I learn this the hard way on our first house hack. I will let you know most of my clients are able to use low money down conventional loans in your circumstance but a major requirement will be how much equity you have in your existing duplex. When you say FHA refinance are you saying new loan with FHA or you refi'd out of your FHA loan?

Jobee Vincent Buenaventura · Answer

@Carini Rochester this is going by the notion that I can legally put in offers and go under contract before the 6 months correct?

House hack “seasoning period” - when can I live in another house?

House hack “seasoning period” - when can I live in another house?

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