How Long Do You Have to Live in the House Hack?

[Ryan Thomson]

House hacking has become an increasingly popular way for people to get into real estate investing while minimizing their living expenses. The basic premise of house hacking is to purchase a property and rent out a portion of it while living in the remaining space yourself. While there are many benefits to house hacking, one question that often comes up is how long you have to live in the property. In this blog post, we'll explore the rules and guidelines surrounding how long you have to live in a house hack.

For owner-occupied loans, such as FHA and VA loans, there are specific rules around how long you have to live in the property. These loans require that you intend to move into the property within 60 days of closing and that you intend to live there for at least one year. This means that if you're using an owner-occupied loan to purchase a property for house hacking, you'll need to live in the property for at least a year before you can rent out any of the space.

However, circumstances can change, and there are certain reasons why you may be allowed to leave the property before the one-year mark. These reasons include:

1. Job relocation: If you need to move for work and your new job is too far away from your current property, you may be allowed to leave before the one-year mark.
2. Health reasons: If you or a family member has a health condition that requires you to move to a different location, you may be allowed to leave before the one-year mark.
3. Property damage: If the property is damaged, and the repairs would take an extended period, making it impossible to live in the property, you can leave the property before the one-year mark.
4. Change in family status: If your family status changes, such as getting married or having a child, and the property is no longer suitable for your needs, you can leave the property before the one-year mark.Divorce or separation: If you're going through a divorce or separation and need to move out of the property, you may be allowed to leave before the one-year mark.
5. Death of a spouse or partner: If your spouse or partner passes away and you need to move out of the property, you may be allowed to leave before the one-year mark.

After you've lived in the property for a year, you may be able to purchase a second primary property by having a qualified reason to move. The rules around this can vary depending on the type of loan you're using and the lender you're working with, but some common qualified reasons for moving include:

1. Upgrading to a larger home: If your family has grown and you need more space, you may be able to purchase a second primary property.
2. Downgrading to a smaller home: If your children have moved out and you no longer need as much space, you may be able to purchase a second primary property.


As you can see it is pretty easy to qualify for a second primary after the year is up. You have at least 7 reasons listed above. It's important to discuss your options with your lender and understand the rules and requirements for your specific situation. 

[Derek Brickley]

Thanks Ryan! Very well explained. I think people too often overlook those situations and circumstances that allow people to move (and sometimes even get another FHA loan)!