FHA Relocation Within First Year

[Scott Thompson]

I am looking at purchasing my first property in the near future using an FHA loan, but have a question regarding the requirement to occupy the home for the first year. I am on a rotational program at my company where they put us through 3 distinct one-year rotations, and we have literally no visibility into where they are going to place us until approximately one month before starting the new position. If I were to purchase a SFR or duplex and then 3 months later find out that I'm being sent to California, does this exempt me from the owner-occupy requirement for the remainder of the first year? How does that work?

I've read a thousand posts and articles about how if you relocate you're allowed to pick up a second FHA mortgage, but I'm not interested in that at all and none of them seem to specify whether that applies during the first year. I don't see anything on the HUD website or anywhere else on the WWW indicating that this situation would be particularly problematic, but wanted to consult the (much wiser) folks on BP.

[Travis Sperr]

@Scott Thompson I think it will be difficult to find a straight forward answer on this topic, probably why there hasn't been a slew of reply's. In my limited knowledge on this matter I believe you would have to more or less plead your case to a HUD/FHA rep as to why you need another FHA mortgage.

One option you may consider - if you have the available cash to put 3.5% down twice is to just put 5% down and go conventional, FHA loans have become very expensive when you consider the PMI that stays for the life of the loan.

A second option (and better one) just keep building capital until you know where you will eventually end up. The last thing you want to do is buy a property in Dallas and California, then end up in Boston, with two properties that have low/no equity in them.