Using FHA for non-owner occupied

[Michael Veloso]

Good Afternoon fellow BPers, I am considering using FHA to purchase a Duplex in my area but I have no intentions of living there as I already own a home free and clear. I have the reserves to put down 20% but ideally I would like to hold on to my cash to spruce up the place to increase the rents and purchase another property early next year. The duplex is partially rented so I could say that I will live in the other unit once I purchase the home. My question is how long do I need to leave the place vacant before I am able to rent it out to someone. I am trying to avoid gaming the system by simply changing my address, but I was told by a local investor that he does it all the time. Looking to do this right from the beginning. Thanks

[Chris Mason]

Your intent needs to be to live there for a year or it's fraud.

Your local investor buddy is playing with fire. 

Always keep in mind when we're thinking of breaking the rules that the "bad guy" can get away with it 99 times out of 100, and the "cop" can screw up 99 times out of 100, but at the end of the day the 100th time means that the bad guy gets locked up and the cop who failed 99 times out of 100 is still the one hailed as the hero.