Is this legal or what should I do about this issue if it occurs?

[Joshua Starbuck]

Hello BP! Was wondering if anyone could help me out with this issue if it were to occur. I am in the military and looking for a home/rental property. I want to "house hack" a duplex, triplex or quad with a VA or FHA loan which will require me to stay in the property for 1 year. My question is, what if I move in and then 6 months down the road, and then I get stationed at a different base? Will that require me to put down a 20% down payment if/when I move out since it will then be considered a investment property or will I have to put the 20% down right at the beginning and not be able to use my FHA or VA loan?

[Louis Jeffries]

FHA or VA do not require you to stay in the home for 1 year. They require you to purchase home as a primary residence. They understand if after moving in a home someones job transfers them.

There are lenders and loan officers who spread that false rumor. There is no time limit. Many lenders sell there loans for a premium and if the house is sold or refinanced within the year they may have to refund some of the premium they earned for doing the loan.

This could only be illegal if you knowingly purchase a home as an owner occupied residence and do not utilize it as such.