FHA loan but not actually living there?

[James Bartlett]

I'm looking to purchase one of the properties I manage. It's a four unit apartment building. I own two homes, my primary residence and an investment property. So I don't actually need to live here and wouldn't want to live here. All four units are rented until sometime next year. Although I'm sure frowned upon is it possible to get an FHA loan and just stay at my primary house?

[Bill B.]

It’s fraud with a HUGE paper trail and 100 clues. 

Do you have homeowners insurance or landlords?

Is your property tax homesteaded?

Are your property taxes sent to a different address?

Are your mortgage statements sent to a different address?

Are you using 4 rents to qualify for the mortgage?

Etc etc etc. 

And, when did you get away with it? If 3 years from now they show you proof that you weren’t living there after signing paperwork saying you would, you’re still guilty. 

I understand the desire to screw people who are trusting you with their money. But please don’t. This is just another black eye for landlords.