FHA/ Conventional/ 2nd Home/ Investment Mortgage?

I currently rent in Florida. My husband and I would like to buy our first home in Tennessee. As a first time buyer we naturally want to go the FHA route. We do not want to move into this new home until we we find a jobs in Tennessee, so we would like to rent out the property in the meantime. Will it be considered a secondary residence/2nd home loan or an investment property loan even if it will be our first home within months? This will be our primary residence we just won't be able to live in it immediately and we'd like to maximize our situation.

If we can't rent it out, can we still get an FHA or conventional loan if we have a job in another state?

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  • 7 years ago
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    You would NOT be able to get an FHA loan in this case. They would consider it a rental property.

    And NO, you would not be able to get the FHA and live in another state. They know this "game". In fact, if you say you are communiting to work, they will actually check the number of miles between the home and the job.

    I would find the jobs and then buy the house. If you are transferring to the area and have the same types of jobs in TN, you shouldn't have a problem.

  • 7 years ago

    Another solution would be to rent an apartment in Tennessee until you both find jobs. Then purchase your home with an FHA loan.

  • 7 years ago

    If it's not your primary residence when you purchase the home, then it's considered non-owner occupied, regardless of what you intentions are. And, that will result in a somewhat higher interest rate than a owner occupied loan, as well as a 25% down payment. You could try lying and say that it will be your primary residence upon close of escrow. But, that is mortgage fraud and, if the bank finds out about it, they could call the loan due and payable immediately, plus charge you additional penalties.

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