House Hacking Requirements

[Russell Woodbridge]

I live and work overseas and do not own a primary residence in the US. I have 3 SFRs in NC rented out with prop manager. I am looking to house hack legally and buy a place near my parents and use it on and off for one year and then turn it into a rental. Can someone point me to the legal requirements to get a conventional loan? My understanding is that the property must be in my name and declared as my residence (driver's license, bills,etc?) and I cannot rent it out until one year has passed. Rental loans require 25% down while conventional down payment is much less. Any tips or advice? Thanks.

[Bradley Dosch]

Hey Russell, it's great that you want to be cognizant of the loan guidelines. Yes if you use a owner occupant loan, it will need to promise to intend to live there for 12 months. Of course, if extenuating circumstances arise in your life, you're not required to stay there. Not sure exactly what your situation is and how much time you'd spend there.

While it does need to be your primary residence, you are totally allowed to rent out extra space. This is what house hacking is. Extra rooms and units should absolutely be rented out! The one year mark is when you are permitted to turn it into a full rental barring any personal life changes that make you do this earlier. 

Just be honest with the lender you choose about your personal situation and explain your goals clearly! Hope this helps :)