Buying HUD home with tons of extenuating circumstances

[Brandon B.]

Hi, I am looking to buy a HUD home but have several extenuating circumstances concerns. How hard is it to prove extenuating circumstances as a reason to move out of a home early, and who is the judge of what is an acceptable "extenuating circumstance?" Would not be getting a traditional 203K / rehab loan and lender wouldn't care - only concern is being blacklisted from HUD for using an extenuating circumstance to exit the deal. Anyone have experience here?

Before we get into fraud, this is not an attempt at fraud; it is a genuine attempt to serve out the one-year occupancy requirement since I'd rather pay long term capital gains anyway or no gains at all if staying for two years. However given so much that is up in the air with different family members and career changes, what are the true consequences of defaulting on an owner occupancy certification and who is the judge of what is a viable extenuating circumstance.

[Paul Welden]

@Greg H. Thanks for your input as all comments are valued. 

There actually is a lot of enforcement by HUD for extenuating circumstances loans thanks to the HUD office of the Inspector General who routinely audits files where a borrower has multiple FHA loans.

@Brandon B. The FHA 203k loan is an amazing loan to use where you want to do rehab/improvements, but it has the same guidelines/rules at the traditional FHA loan (203b) but with a rehab component. So, Reference HUD SFH 4000.1, page 170/1149, which is actually page 145 of the manual, where it discusses extenuating circumstances.

Hope this helps!