Updated over 8 years ago on . Most recent reply
Owner Occupant Loopholes
I am just curious to see what can legally be done.
I've been pre-approved for an owner occupant FHA loan. My loan officer said that there is no specific time period I must live in the house, but I have to live there for a while. I am assuming after about 1 year I could rent it out.
What are the best ways to make money off of this property as I live here, without breaking the rules?
Most Popular Reply
Live in the garage? Rent the rest out. Or similar.
The promise you are probably going to sign at the closing table (I'm not your lender, obviously, so I can't actually guarantee what the paperwork will say) is probably going to have you promising to move in and establish it as your primary residence within 60 days, and then to owner occupy for one year from then.
However it does not specify where in that home you establish your primary residency.
I'm not a lawyer, this is not legal advice, I don't know if something like that has ever gone to litigation and how it played out. It's just something fun that I observed when reading through loan docs.