If I get an FHA loan to buy an owner-occupied multifamily residence, how long must I stay?

If I buy and then move out of a previously owner-occupied multifamily residence secured with a FHA loan and rent the whole thing, will I need to refinance the loan? If 'not necessarily', how long must I stay before I can leave and not have to refi the loan? I am interested in buying a multifamily residence that I can live in while I go to graduate school so I can save a little money in housing costs without having to rent. I currently own a single-family house and would sell that prior to moving into the theoretical mulitfamily residence. I would probably need to apply for some form of downpayment assistance too, but would have about $5000 of my own money after my house sells (given a modest asking price).


I just want to know a general answer re:FHA. If a small multifamily residence is previously owner-occupied and becomes a 100% investment property at some later date (ie I want to leave), do the FHA guidelines require that you refinance out of the loan since it is not owner-occupied? FHA is for owner-occupied residences.

3 Answers

  • 1 decade ago
    Favorite Answer

    Believe it or not, there is no specific time limit, and you are not required to refinance if you move out.

    A good rule of thumb might be to stay for at least a year.

    If and when you do move out, contact your home insurance company so the policy can be ammended to reflect that it is a rental property. It will raise the premium but it will cover your rear end.

    Source(s): real estate broker loan officer
  • Anonymous
    1 decade ago

    Kelly your lender can answer these questions. We have no way of knowing what the terms of that loan would be. And it would only be a guess at best. While a some lenders on this venue could give you some idea, you would receive accurate information from your lender.

    Source(s): appraiser/realtor
  • 3 years ago

    there isn't any set length of time. you're able to purchase a distinctive abode at any time...even if you could least complicated have a million proprietor occupied abode mortgage...Your 2d abode will require a greater robust down value, especially 20%.

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