Do you have to live in the house using an FHA loan?

[Rob Kishi]

Hello,

My brother and I live in Oakland CA and are considering investing in a multi-family unit here in the bay area using an FHA loan. That being said, we like the home we're living in now and ideally wouldn't look to move however I believe that using an FHA loan requires the borrower to live in the financed property for at least a year?

My question is, is it common for people to "say" and "show" they live at the FHA financed residence by having the bills in their name and so forth without actually living there? If my brother uses an FHA loan to acquire a four-plex as his "primary residence" and then rents out all of the units instead of physically living in one, would it introduce a significant amount of risk, and if so what kind?

Thanks,
Rob 

[Elise Marquette]

@Rob Kishi that is mortgage fraud- please remember that the lender who issues the loan is a licensed professional and if anything fraud related comes up on their audits, that could put them in a difficult position. I’ve had clients who have tried to commit mortgage fraud and I’ve fired each one of them. It’s not worth jeopardizing my career and livelihood.