New England Properties

Frequently Asked Question: FHA Occupancy Requirements on a Two Family Home

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.

 

 

Lew Corcoran
Licensed Real Estate Professional

Best Choice Real Estate Services
133 Turnpike St, South Easton, MA 02375
Phone Toll-Free: (800) 984-3341

Serving Easton MA and the Surrounding Area

 

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0 commentsLew Corcoran • January 18 2010 04:52PM