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- Jun 7, 2008
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"FHA will not insure a mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining investment properties, even if the property to be insured will be the only one owned using FHA mortgage insurance."
That is a direct quote from the fha website. Just wanted to run this by you and ask, does this mean that when I go in an talk to a mortgage broker that I should give the impression that I plan to permanently live on the property? If I mention that I plan to move out eventually will I be denied the loan?
I am ITCHING to do this and don't want to screw it all up!
Investment properties are those you don't occupy ("true" investment). That FHA quote only applies if you don't intend to occupy the property, which is illegal. I am 100% sure the FHA allows you to obtain a loan on a 1-4 unit property if you truly will owner occupy. Hundreds of thousands of people have done this. My loan never would have made it through Bank of America underwriting if it wasn't possible.
As far as timeline goes...you must intend to occupy the property for at least 1 year. After that you can do whatever you want. And don't forget, you can definitely have a roommate to increase your cash flow.
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