Using FHA for "primary residence" and later renting it out?

[Sam T.]

I understand that FHA loans are only allowed to be used on a primary residence, so I'm wondering if there's anything illegal about getting a 3.5% down FHA loan and moving into the property, then eventually moving out and turning it into a rental. I wouldn't be surprised if someone could successfully do this and get away with it, but I would like to know if this is actually illegal. I don't want to break any laws or official rules.

Anyone know how that would work? Would you somehow be made to refinance upon moving out?

[Chris Mason]

Originally posted by @Sam T.:

I understand that FHA loans are only allowed to be used on a primary residence, so I'm wondering if there's anything illegal about getting a 3.5% down FHA loan and moving into the property, then eventually moving out and turning it into a rental. I wouldn't be surprised if someone could successfully do this and get away with it, but I would like to know if this is actually illegal. I don't want to break any laws or official rules.

Anyone know how that would work? Would you somehow be made to refinance upon moving out?

 Your occupancy promise on paragraph 6 of the deed of trust lasts for 12 months. After that, you've fulfilled your occupancy promise and can move out, converting it fully into a rental.