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Updated over 12 years ago on . Most recent reply
is it ok for an owner of income property with FHA loan to move out before 2 years over?
Hello,
my fiance has a 4-plex (he lives in 1 unit, rents out the other 3) where he is supposed to live for 2 years, since it's an FHA loan (per FHA rules). I am in a process of purchasing a house (short sale) under my name with a CONVENTIONAL loan, but the thing is, the deal probably will not close until AFTER we get married, since short sales take forever. His unit in the 4-plex is too small for us to live together, and I don't feel safe in that area. But he lived in his 4-plex for only 1 year (another year to go per FHA rules), and he does not want to be breaking any rules, and he thinks that it will NOT look good if I finalize the purchase of a house under my name AFTER we get married, he's afraid there may be some penalties from FHA administration, since he failed to stay at his 4-plex for 2 years.
Are his fears legitimate?
thank you so much for you input!
Most Popular Reply
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I believe FHA only requires occupancy for 1 year to meet their requirements, not 2 years.