Buying a home that is renter occupied with a conventional FHA

[Wesley Allen]

Hello,

My name is Wes. I'm new to all of this and I've had a few thoughts going through my head that I was hoping you all could possibly help me with. I have been browsing some websites looking at homes and I came across a condo that is for sale for $50,000. At the moment the condo is rented out to someone. Since I haven't been saving for very long my cash is low and I'm curious if I would be able to borrow with say an FHA loan with the intention of moving in and just keep it rented after I bought it? Or would I have to move into it immediately after the purchase?

[Mindy Jensen]

@Wesley Allen, no one mentioned the "MF" word in this thread, so I will. Saying you will occupy the property in order to get an FHA loan, and then not moving into it with the 60 days allowed, is Mortgage Fraud, which is a felony.

I'm not saying you intend to commit Mortgage Fraud, but I want you to be aware of the consequences. It might not seem like a big deal, but it is.

When does the lease end with the current renters? If it's up soon, you could have the current owner give them notice of non renewal as a condition of the contract and still purchase, wait for them to leave within 60 days, then owner occupy and not be committing mortgage fraud.

You also only have to owner occupy for 12 months. You could turn it back into a rental after that.