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Updated almost 2 years ago on . Most recent reply

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Laura Romaniello
  • Keene, NH
3
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2
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Timeframe to move in to a house hack on an FHA loan

Laura Romaniello
  • Keene, NH
Posted

When house hacking with an FHA loan, is there a certain timeframe that the FHA dictates you to be moved into your property within after making the purchase?

Say I purchase a duplex with an FHA loan and plan to occupy of the units as my primary residence, but I have five months left on my current 12-month lease. In order to avoid breaking my lease early to move into my new duplex right away (and to avoid paying the fees associated with breaking the lease), my idea is to allow the current tenants in my duplex to stay for the next five months and collect their rent for both units, all while continuing to pay my rent for the rest of my lease term. Then once my lease is up, I'd take over one of the units in the duplex.

Basically my question is this: does the FHA require you to use the property as your primary residence right away after purchasing, or could I wait the five months until my current lease is up and am able to move? 

Most Popular Reply

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18
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Zack Adams
  • Rental Property Investor
  • Bluffdale, UT
8
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18
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Zack Adams
  • Rental Property Investor
  • Bluffdale, UT
Replied

Per their rules, you need to occupy the place as your personal residence within 60 days of closing on it.

4155.1 4.B.2.b FHA Requirement for Establishing Owner Occupancy

At least one borrower must occupy the property and sign the security
instrument and the mortgage note in order for the property to be considered
owner-occupied.

FHA security instruments require a borrower to establish bona fide occupancy
in a home as the borrower’s principal residence within 60 days of signing the
security instrument, with continued occupancy for at least one year.


https://www.hud.gov/sites/docu...

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