FHA House hacking risks?

[Armando Carrera]

Hi everyone,

Im trying to figure/find out how strict the rules are when it comes to getting an FHA loan (I want the minimum down payment) and renting it right away. Ive read that you must occupy the home at least 1 year before you can rent it out as an investment.

Have you guys tried renting the home out immediately after closing escrow? Have any of you gotten in trouble for doing this? 

I want to purchase another investment home but dont really want to house hack...

Thank you

[Christopher Jason Lloyd]

That would be mortgage fraud and a felony. Basically, you're saying your intent is not to move in, but with owner-occupant loans for lower downpayments, you will sign a statement certifying your intent is to occupy the property. It also puts your agent and lender in a tough spot where it could be a perceived "fraud for profit" and they could lose their license and face time/penalties if they knowingly cooperate. (I am not a lawyer so none of this is legal advice but have seen similar situations occur). If you want a lower downpayment way of investing without moving into the property, I recommend the BRRRR method. Will take a lot more learning than the househack, but its legal. Connect with local wholesalers, partners, hardmoney lenders and DSCR lenders and familiarize yourself with real estate contracts.