What happens if I have an FHA loan but need to move early?

[Kathleen Sedita]

I am looking at duplexes & triplexes to purchase where I would live in one and rent the other(s). I am a first time homebuyer and wanting to do an FHA loan. However, what if "life happens" and I end up needing/wanting to move out of the property before the 12-month residency requirement is up? What are the ramifications? I know there are exceptions for things like divorce, military orders, having kids/family expansion, etc. But I'm trying to figure out what the worst case scenario would be and work back from there.

I appreciate any insight!

[Luke Trovinger]

Hi Kathleen, you are correct that there are certain instances of "life happens" exceptions that would allow you to not fulfill the FHA occupancy requirements. Here is a link to a good, high-level overview of a few of those items:

https://www.fhaloans.com/artic...

Taking on an FHA loan knowingly not intending to fulfill the occupancy requirements could be considered fraud and end in civil or criminal pursuits, which would likely be the worst case scenario you mentioned above.

Good luck on your home search!