FHA Forbearance Rules

[John Anderson]

Hi all,

I have a friend in a unique situation, and was wondering if anyone could provide clarity here.

My friend bought a home in 2019 using a FHA loan. However, about 8-9 months later he unfortunately lost his job due to Covid and went into FHA mortgage forbearance. He fortunately found a new gig in another city and moved out of the home about 13 months after initially buying it, and put it up for rent. He informed the bank and the insurance company, and both were ok with it.

My friend lived in the home and did not rent it out for 12 months following its purchase, per FHA guidelines. However, because of the mortgage forbearance he did make 12 monthly mortgage payments on it prior to moving/renting it out. Is this allowed, or did my friend violate the terms of his FHA agreement?

Any guidance would be greatly appreciated.