FHA Loan but never moved in, what happens?

[Navid A.]

I was asked this question today and I didn't have an answer so I wanted to reach out on BP and ask here. What would happen if you buy a home using traditional, FHA, or VA financing but decided not to move in after closing on the property? I know these loan products often require the property to be owner occupied within a certain time period, but what will happen if the owner never moves in and decided to rent it out instead? Are there any penalties involved?

I know when I got my first home with a VA loan, I just had to have "the intent to occupy" the home at closing, but it was just a formality, not an actual regulation.