What happens if you're relocated while having an FHA loan?

Question

I am looking into house hacking and was wondering the restrictions to an FHA loan. If you find a job elsewhere while you have the loan are there any penalties for moving? Are you still able to keep it and use it as a rental property? Are you able to get a second FHA loan in the place that you move to?

Thanks for any insight you might have!

Jaysen Medhurst · Answer

It's all about intention, @Joshua Filkill. If you buy in good faith and then your career takes you to a different city, you'll be fine. I think there is some guidance about how far away, etc. If you were to buy knowing that your job is going to be moving you, then you're on shaky (fraudulent) ground.

You can rent out your primary after moving. Use caution, many primary residences to do not make good rentals. Especially if they are highly leveraged.

You can only hold one FHA mortgage at a time. It's always worth looking into other low-down payment mortgage products at your local banks and credit unions.

Anthony Gayden · Answer

This actually happened to me. The answer is nothing happens. There are no penalties. The bank does not care.

I was living in one of the units of my 4-plex house hack in Tucson, AZ when I was offered a job in Omaha, Nebraska. I had only lived there for 10 months. I moved to Nebraska.

In fact if you relocate far enough away you actually become eligible to get a second FHA mortgage. I actually talked to a mortgage lender in Nebraska and found out I was eligible, though I decided against it.

Joshua Filkill · Answer

@Jaysen Medhurst @Anthony Gayden

Thanks for the information! I would be buying in good faith to live there, but I'll be a recent graduate and may have to take a job out of state. Thanks for clearing it up.