AD Mil in Cali Trying to buy out of area in Southwest Florida

[Matthew Ayala]

Good evening all! I am currently stationed in San Diego, California, though my home of record is in Southwest Florida. Was considering buying here but I came to the conclusion that real estate is expensive as hell in San Diego, so I am currently exploring out of area which included looking back at my hometown, plus I am also trying to help my family out with buying a new house for them to reside in. They currently live in a 3bd/2ba which they own but have not fully paid off. The median rent in the area my family lives in for a 3bd/2ba is $1600 and they currently pay $1100/mo. I plan on buying a duplex, having them move into one unit and renting out the other with an FHA Loan. The FHA Loan normally has an occupancy requirement for a year, however with research I have found that homeowners who can't occupy the residence because they are active duty can have their family member live there, or if they intend to live there after AD.

“Borrowers who are military personnel, who cannot physically reside in a Property because they are on Active Duty, are still considered owner occupants and are eligible for maximum financing if a Family Member of the Borrower will occupy the subject Property as their Principal Residence, or the Borrower intends to occupy the subject Property upon discharge from military service.”

Am I misinterpreting this somehow? Will this actually allow me to buy a house for my family that is out of state? Are there any other conventional loans that I could use that have this 'loophole'? This all seems too good to be true so I don't want to get my hopes up. Are there any other strategies I could employ for buying houses out of area, while active duty, that don't involve me moving duty stations/locations?

[Matthew Ayala]

Originally posted by @Doug Spence:

@Matthew Ayala Have you reached out to a local lender in FL who specializes in FHA loans? They should be able to answer all your questions and get you pre-qualified. Keep us updated on your progress!

I did! He confirmed that a family member could indeed live in the property with the FHA loan. I emailed him back and I am currently trying to figure out if I can get that benefit with the VA loan as well. Thank you for telling me to ask a local lender, I never would have thought to ask them. I appreciate it and will keep you guys all updated with more amplifying information as it becomes available!