House Hacking advice

Pittsburgh, Pennsylvania
House Hacking
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House Hacking advice

Alec Jacobs
New to Real Estate · Industry, PA · Member since 2023 · 65 posts · 52 votes

Good morning everyone.

I was wondering how long you HAVE to live in a home if you househack. I know it is illegal if I would never plan to live there but is there a set time you have to live there? I would appreciate it an experienced house hacker could clear this up.

Thank you!

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Doug Spence
Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
3y

It depends on what type of financing you're using. If you're doing conventional I don't think there is a specified time, but the VA loan is different. @Erik Browning do you know the answer? How long does a lender expect the owner to live in a primary residence?

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  • Nolan Chandler
    Investor · Southeast North Carolina · Member since 2021 · 61 posts · 31 votes
    3y

    Hey, @Alec Jacobs!

    House hacking implies living at the property. For how long is usually determined by "intent to live there as your primary residence." Can life happen (get a new job, other emergency, etc.) and you have to move? Sure. Is it more suspicious if you leave after one month? Yes. After a year and a half? Probably not. It all depends. What you definitely don't want to go anywhere near is mortgage fraud. I personally house hacked in the military and know a close friend that did too. She bought with a VA loan, rented the other rooms in the house out to servicemembers and then she had to PCS to California about a year and a half later. She can still rent that house out because she had the intent to live there as her primary residence, and had to move based on orders. Even if she just decided to move on her own (assuming not bound by military orders) at that time, it still would likely be okay. Speak to lenders to get a feel as well. Just my two cents. I would be happy to discuss if you ever wanted to in more detail.

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  • Alec Jacobs
    OP
    New to Real Estate · Industry, PA · Member since 2023 · 65 posts · 52 votes
    3y

    @Nolan Chandler

    thank you for your response! I have nothing set in stone yet. This question just popped in my head and I haven't really heard anyone talk about it.

    1Reply
  • Doug Spence
    Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    3y

    It depends on what type of financing you're using. If you're doing conventional I don't think there is a specified time, but the VA loan is different. @Erik Browning do you know the answer? How long does a lender expect the owner to live in a primary residence?

    1Reply
  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    3y

    @Alec Jacobs just to reinforce some points here - the entire concept to house hacking is that we occupy the home.  The reason why we want to occupy the home is because we have a lower downpayment and lower interest rate on a mortgage.  If you just went and purchased a home to rent (one that you didn't occupy) your downpayment would be around 20% of the purchase price - as a primary:  5% and even less.  When we use a "primary home" mortgage and get that lower interest rate we do sign on paperwork to occupy the home for 12 months.  That's it.  And there are plenty of people that get a new primary home every year or every couple of years.  My first home was one that I house hacked and would certainly recommend it to anyone if you have the ability to do so.

    Thanks for the post!

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  • Tanner PileBusiness Member
    Real Estate Broker · Colorado Springs, CO · Member since 2019 · 388 posts · 326 votes
    3y

    @Alec Jacobs

    This is my understanding from my lenders information on it. This is for living in one house hack and then qualifying to purchase another house hack: 2 years with out a reason for using another primary residence loan, 1 year plus a good reason for why you're wanting to move and buy another property, 6 months with a really dang good reason and you better have the underwriter emotionally moved by your letter to make it happen. 

    I've only done this after 1 year and wrote a letter stating that I will be moving across town and closer to work and more entertainment/activities I enjoy doing. 

    If this was just to do a house hack and move out to not buy another property it is a gray area since I haven't heard of lenders going to check to make sure you're still occupying the property after a few months. 

    Good luck!

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  • Jon Schwartz
    Realtor · Los Angeles, CA · Member since 2018 · 952 posts · 1k+ votes
    3y

    @Alec Jacobs, there's no amount of time you "HAVE" to live in your house hack. There's no law you're breaking (not directly), and nobody's going to come and check.

    Here's what it comes down to: when you sign an owner-occupant mortgage, you're agreeing to live there for at least 12 months. That's the paper definition of "owner-occupant."

    Again, nobody's going to check that you live there, and if you move out in three months, nobody's going to care. You have to keep paying the mortgage, of course, but so long as you do, your lender won't care where you physically live.

    An issues arises, however, if you want to get another owner-occupant loan within 12 months. Your original lender probably won't even accept an application from you. And you're likely to fail underwriting with other lenders. Why? Because by applying for another owner-occupant loan within 12 months, you're clearly demonstrating that there's a serious risk you won't stay in this second home for 12 months. Lenders don't like that.

    After the 12-month-mark, most lenders will be fine giving you another owner-occupant mortgage.

    Good luck! I house hacked in 2019; best move I ever made.

    Best,

    Jon

    1Reply
  • Ryan ThomsonBusiness Member
    Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    @Alec Jacobs when you sign for the house at closing you sign something that says you intend to move into the house in 60 days and that you intend to live there for a year. 

    There are lots of acceptable reasons you can leave early. 

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  • Benjamin Sulka
    Cleveland, OH · Member since 2022 · 811 posts · 578 votes
    3y

    12 months.

    There are other ways to get out of this like the other posters mentioned but 12 months is the standard for owner-occupant. 

    Happy House Hacking! 

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  • Tanner Sherman
    Real Estate Broker · Omaha, NE · Member since 2020 · 329 posts · 203 votes
    3y

    You must intend to stay in the property for a minimum of 1 year for all owner occupant type loans. This includes, FHA, VA, Conventional, USDA. Like the consensus above, life changes can happen that cause you to change where you live, but if you go to apply for another loan within 12 months you will have to write a letter explaining the extenuating circumstances. You might get away with it, but do it again and apply for a 3rd loan, you're asking to be investigated for mortgage fraud. Not worth it.

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