How Long to Live in a House Hack

[Ryan Haltom]

Hey Everyone,

I have heard it said on the podcasts before that the reason you are required to live in a house hack for at least a year is because that is how long it would take you to qualify for another mortgage to go buy your next one. My understanding is that there is no federal housing law in place that speaks to this, unless I get an FHA loan potentially. I also understand, though, that this can vary lender to lender. I am considering buying a quadplex as a house hack, but the eventual goal would be to move back into my current primary residence rather than buy another, so the seasoning period for me to get another loan would not apply. Is there a way with some lenders for me to buy a house hack and live in it less than a year and move back into my current primary? I certainly do not want to commit mortgage fraud. Just wondering if anyone has any experience with this. Thanks.

- Ryan Haltom

[Andrew Katz]

The stipulation with conventional and FHA loans say you intend to occupy the the house for at least a year. Whether you occupy it or not, you won't be able to qualify for another loan for another year.

You might not end up living there for an entire year because if you move in and you don't like the house, you don't like the neighborhood, or you need to relocate for a job.

If you get the loan and never intended to live there for an entire year, then you are committing mortgage fraud. 

[Ryan Haltom]

Quote from @Andrew Katz:

The stipulation with conventional and FHA loans say you intend to occupy the the house for at least a year. Whether you occupy it or not, you won't be able to qualify for another loan for another year.

You might not end up living there for an entire year because if you move in and you don't like the house, you don't like the neighborhood, or you need to relocate for a job.

If you get the loan and never intended to live there for an entire year, then you are committing mortgage fraud. 

 @Andrew Katz Thank you very much.

[Rick Albert]

That is my understanding as well. It is all about intention. I had a client who refinanced their home and then I helped him buy a new house about 5 minutes away. When the lender brought up the issue, he just said that he needed more backyard space for his kid and it was a non-event.

[Ryan Haltom]

Quote from @Rick Albert:

That is my understanding as well. It is all about intention. I had a client who refinanced their home and then I helped him buy a new house about 5 minutes away. When the lender brought up the issue, he just said that he needed more backyard space for his kid and it was a non-event.

 @Rick Albert Thanks so much.

[Anthony Swain]

Hey @Ryan Haltom,

I agree with the others. It is the intention to live there, but if something comes up i.e. neighborhood troubles, job placement, additional family member, etc. then there isn't an issue. 

I'd shy away from actively openly sharing the intention to do it beforehand. 

However, 'm sure there are ways that you can make it work.

Good luck with it Ryan

[Ryan Haltom]

@Anthony Swain Thanks so much.

[Philip Hourihan]

 @Ryan Haltom  I've worked with clients in similar situations and it really comes down to the underwriter, not necessarily the lender.  Based upon the details you have, there could be potential questions from an UW on the purchase of the quadplex as to why you would be making the change from the current primary to the quadplex and from the brief information you've provided there are could be a lot of reasons why.  If and when you move back, there are also a lot of explainable reasons as well if it ever came into question.