FHA Sell or Re-FI, how long ?

Question

When purchasing a property with an FHA loan, How long do you have to owner occupy the property before you are able to sell or refinance?

Alexander Zurn · Answer

@Timothy Howell when you close on an FHA loan, you will sign an owner occupancy cert stating that you will occupy the home for at least 1 year before moving or renting out.

If there are other aspects to your questions let me know.

Good luck!

Timothy Howell · Answer

@Brent Coombs

Interesting Brent, actually the property I have in mind asking price is around 85% ARV of the comps. Also, the property qualifies for the 203k program adding a bathroom would give it a great boost in value.

I am Genuinely looking for a house to live but I need some skin in the game to start RE investing,

If its a deal done right, Personally I think this is a tactical entry.

Brent Coombs · Answer

As far as I know, you could start the refi process BEFORE the 12 months was up - provided that you cleverly bought/added the needed 20% equity before the refi.

Which means: once you conventionally refinance, (even if less than a year in), you would no longer have the owner-occupancy requirement. Correct?

And, I don't know of any prohibition that would stop you SELLING before one year was up. But I'm guessing that you would need to be truthfully not INTENDING to sell it within that year. Correct?

(If you made a habit of that, how long before FHA-Loan approvals dry up for you?) Cheers...

FHA > Sell or Re-FI, how long ?