Does FHA come check on you?

Question

I have any opportunity to go to school in Ohio and add another property to my Ohio portfolio using a FHA Loan. The city I want to use an FHA loan is in columbus and my college is Sanduskyabout 2.5 hours away. So this is my plan.

So I will be going to school in Sandusky and renting an apartment. I will buy a property with an FHA loan, keep one room for myself and add a bunch of belongings in this room. So it looks like im staying there. My majority time will be spent in sandusky Ohio. I will come back to Columbus and stay in my room for some days and weekends.

How often does FHA come and check on the house? Could my roommates report me?

Matt Devincenzo · Answer

Don't do it, it's mortgage fraud period. You must stay in the home the majority of nights, if you don't then it is fraud. Whether you get caught or not it is unethical.

Remington Lyman · Answer

I have never met the FHA police. I am still looking for them

Andrew B. · Answer

It is incredibly unlikely that you will be caught. However, if you take the risk you should consider that it is a federal crime. You should also note that you've posted your intent to commit that crime using your full legal name on the internet, and will have no reasonable ability to deflect suspicion.

Alfath Ahmed · Answer

If you are going to be staying here in Columbus a few nights of the week that I don't believe there would be as issue. There are people that live between 2 places, but if you could consider Columbus as your primary residence and have all of your mail and utilities under your name then you will be fine.

Jason Wray · Answer

Benjamin,

I am not sure if you have the ability to put 10% down but you can buy it as a Second Home and rent it out while you are away.  Second homes offer a 90% LTV with No PMI and you are allowed to use it as a VRBO or STR.  This may not apply with all lenders.

FHA does not typically door knock but they expect you reside within 60 days and use it as your primary residence for the "Majority" (but not all of the year) so if you are away for "school purposes" it can be allowed.  It's similar to Military deployment which is allowed as well as other "Change in Life Circumstance" rules.  These are actually worded in the HUD handbook and guide lines but some lenders have overlays and may state differently.

Ed W. · Answer

@Mike Hasson

I agree with those who have said there are no "FHA Police", don't believe there are, but I fully agree with Mike Hasson and some others.  You've already declared that your room is designed as a subterfuge - re-read what you wrote.  When authorities are trying to determine whether a crime has been committed, incriminating statements on the internet is low hanging fruit.  Those words may also be seen by a future employer.  Not good.  And, worse, there are so many legitimate ways to accomplish various goals in real estate, to get in the habit of breaking the law (or potentially breaking the law) is, frankly, stupid and unnecessary.  Time and money are both better spent learning better ways of accomplishing your goals legally and they are available to learn right here on BP (at least by way of introduction to them) and Mike Hasson gave you some specific ideas.

Listen, I'm now retired, rarely post on BP, and I don't give a darn if you take my advice or not, but hopefully some newbie will be deterred from being UNNECESSARILY stupid.  I personally know of one guy who went to jail for totally unnecessary real estate practices (btw, he had about 400 properties but he was a lazy s_b and took every shortcut you can imagine as a regular practice on repairs, loan apps, docs - the works) - was 400 being a success at the price of going to jail?  I also knew another who literally blew his brains out as a result of getting caught by the feds.  Learn the business, put honesty and integrity and knowledge and ethics high on your list and you will be miles ahead and sleep well.  Or not - it's your choice.

Scott Mac · Answer

What are you going to school for?

SanDusky is fun Cedar Point.

If you get caught by the Government breaking the law, they will make your life very uncomfortable and you could have a criminal record from it.

Why not just find a comparable investment in beautiful (fun) SanDusky.

And if you had a boat on a trailer (or a friend with one), there's a lot of fun water out there to explore.

Good Luck!

Mike Hasson · Answer

One way to get get caught doing something you shouldn't, is to post about it in a public forum. But I think see what you're trying to do, though you may be asking the wrong questions to accomplish your goals.

Some alternative questions you may want to consider:

Are there good deals in Sandusky or closer to school?Are there equivalent programs closer to Columbus?Will renting an apartment negate the benefits of house hacking?Are there other means of temporary lodging available? STRs? Hotels? Vanlife? Is college even worth it anymore? (jk jk)

Matt Bishop · Answer

@Benjamin Furney, if you don't already know the answer,  you're probably not the right person to do this.  When you get a VA or FHA loan you will need to sign a document stating you "intend to occupy the property as your primary residence". The only time I see a problem arising is if you default on the loan and try to avoid financial responsibility.  I've done both VA and FHA dozens of times with no problems.  In my heart, i did intend to occupy each property and then changed my little mind. Are you absolutely certain you will be able to repay the loan?  If so, do it.

Greg H. · Answer

I would have zero hesitation in doing this if the home will be your permanent address with utilities in your name.  There is no FHA police and no one here can give a case where someone was prosecuted.  You are not committing a crime by going to school out of town while keeping a home in another town as your permanent residence

Does FHA come check on you?

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