Owner Occupied Loan while working overseas

[James C.]

I am currently working overseas (more than 330 days per year), and want to "House Hack" by purchasing a 4 unit property. I would Owner Occupy one of the units, staying there when I am back in the USA. When I am not there it would be vacant.

My question is can I get an owner occupied mortgage like FHA 203B/K, or 5-10% conventional?

Thanks,

Jim 

[Rob Barry]

I am no expert here, but I am an American living internationally full time, going on my third year.

My assumption would be that if you kept one unit open with your furniture in there and legitimately treated it as your primary U.S. residence, you could use that to get an owner-occupied rate. I hear banks sometimes check up on these things.

But is shaving a point off your mortgage worth jeopardizing your FEIE by establishing a tax domicile? I use the bona-fide resident test to write off a boatload of tax ever year, and if I had a primary residence deeded to me with a full paper trail to boot, I would fear an IRS tax surprise in the mail one day. This may be different with a physical presence test, as you can't dispute meticulously organized airfare records that prove you were out of the country at least 330 days. But then, do you want to spend your one domestic month setting up a property in the U.S. to shave a point off your mortgage? I suspect renting the fourth unit would be more profitable than leaving it vacant to get a slightly better rate. Just thinking out loud here, but I really would recommend running this by a qualified accountant.