Background: 3 1/2 years ago I purchased a house using a FHA loan with the sole intent of owning and living in the property. Now my finances have allowed me to look into investment properties and I would like to proceed in purchasing a duplex (3bed 2bath on each side) and moving in to one side of it. I would like to rent out the other side as well as keep my current 2bed 2bath house and rent that out as well.

Unforeseen Problem: (In reference to my currently owned house)Upon re-reading my FHA Loan Doc.s I have come across an Affidavit of Occupancy. Stating the property will be used for Primary Residence and that the loan is in reliance upon the continued occupancy status as represented. (contract states that I must own and occupy for at least one year after agreement to purchase which I have done.)

Questions: Since I have lived in the property almost four years should I be concerned with this? If this is a major problem Is ReFi the only available option of removing this? It looks like the Affidavit states that if I misrepresent the occupancy status they have the right to receive from me an amount sufficient to reduce the principal amount of the loan to the maximum amount allowed for non-occupant owners under applicable regulations or industry guidelines(75% of FMV?). So if that is already the case(which i believe it is) I should have no problems?

Thoughts?

I acknowledge that all information received is given with the soul purpose of providing feedback based on opinions and previous experience and that no responses are intended to be used as legal advice.

"Affidavit of Occupancy"- Advice NEEDED!!

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