House Hacking Occupancy Requirements

[Nate F.]

I have heard that you must occupy your primary residence, for me being a house hack duplex, for one year before moving out and making it a rental and getting another conventional loan and repeating the process. Does this rule ever really get followed and has anyone heard of someone getting in trouble for moving on to a new primary residence to house hack within the one year?

[Bill B.]

You’re going to sign a document saying you intend to live in the property, that’s why you’re getting a lower downpayment and a lower interest rate. If you don’t plan to live there a year just get an investment loan. No need to screw over the person lending you money. 

That being said. Some people will nitpick and say it says “intend” to live there so you can move out anytime. But many of those same people will never pack up their old home, change any dresses, or buy homeowners insurance for their new “primary” home. 

Nobody’s coming after you at 11 months, or if you get a job out of state, get married, etc. But it is pretty obvious mortgage fraud if have a home you’re not moving out of, get landlords insurance, or have your statements mailed to a different address.  

Believe me. I bought a new primary every year for 5 years, it goes plenty fast. Maybe he the extra months to save up for a 4plex instead of duplexes?

good luck and congrats on getting started.