FHA occupancy regulations

[Jonathan Bebey]

Hello BP Community, 

I am looking heavily into buying a multi family property using an FHA loan for a duplex or triplex to house hack. Per FHA regulations I have to live in the house as a primary residence for 1 year before moving out and renting out my unit. However, I read about exceptions such as relocation for a job (>50 miles). I work in healthcare and I am considering relocating to travel around to new cities resulting in me moving within the 1st year.

My question is: Is it legal to rent out my residence with an FHA if I was required to move outside the area where I was house hacking? Can I get a new FHA loan in my new city? Any insight on this question is really appreciated!

[Kyle Deutschmann]

Hey Jonathan, when you get a mortgage for an owner-occupied/primary residence, you’re signing paperwork that says you have the intention of staying there for at least a year. If your circumstances change after the fact (such as a job relocation like you mentioned) then you may be able to get out of that requirement; however, if your intention from the beginning is to move out in less than a year then you’re walking a fine line with committing mortgage fraud. Happy to chat and discuss further if you’d like.