Owner Occupancy

[Jason Kaufman]

I have clients that are interested in purchasing a town home for a rental but the HOA says they must live there a year before they can lease. Does anyone know a work around for this?

[Kassandra T.]

@Jason Kaufman

Double check the actual rule in the declaration. To my knowledge the FHA / loan rules on HOA's just say that the rental must be a one year lease (Every HOA is different on the lease term requirements but most are one year).

The only place I've heard of this rule is when using a FHA or VA loan program.

Also, it is based on how many rentals are in the complex. So lets say your client waits the one year, and then he applies for the rental, it is possible he will be on a wait list before he can even rent the unit out.

HOA/Rentals are difficult to have anymore due to loan programs on the HOA and the Buyer...also the Board is forced to rule with a heavy hand.

At least this is how Alaska operates.

Kassandra

Author

[Wayne Brooks]

One to two year restrictions are common here. No legitimate work around.