Frequently Asked Question: FHA Occupancy Requirements on a Two Family Home
Q: I am purchasing a two family with a FHA loan, living in one unit and renting out the other. The occupancy requirement is one year according to the documents. Does this mean that after one year I could move out and turn the property into a full rental without violating FHA rules? Or would I need to refinance to a traditional mortgage?
A: After one year, you can move and rent out the unit you plan on living in without refinancing into a traditional mortgage. However, unless you meet one of FHA's exceptions, you will not be able to get another FHA mortgage unless you pay the first one off.
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