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Are there any rules about how soon you can rent out a property after purchasing it with an FHA loan?

by matilde29@mail.com from Reno, Nevada. May 16th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Guidelines state 12 months, however if you are forced to move due to a job transfer or you had to move closer to a sick relative, or any other acceptable extenuating circumstance, you could rent the property out sooner than the 12 months.. If you just want to purchase a different home down the street, then you cannot do it until you have satisfied the 12 month guideline... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

May 16th 2013
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

When you purchase the home and sign the loan papers one of them is the affidavit of occupancy where you commit to moving into the home within 60 days and keep it as your primary residence for at least one year. Anything less would be considered fraud. There are special exceptions, like if you are transferred out of the area by your employer that would make the new commute untenable, etc. Be very careful. Everyone is looking at these transactions carefully and I know of several instances where the banks have turned the transaction over to the FBI Mortgage Fraud task force because the homeowner wasn't in the home the full year. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

May 16th 2013
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Teresa DelRosario (TeresaDelRosario)
#37 ranked lender in Nevada - 3 contributions

yes, you must occupy the property for 12 months.

May 16th 2013
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Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 198 contributions

Teresa is correct......

May 16th 2013
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Tim Howard (TimHoward)
#74 ranked lender in Ohio - 52 contributions

12 months is correct. You are typically limited to one outstanding FHA loan though. Exceptions can be made for a 2nd property but one of the properties would likely need to be below 75% LTV. Just in case you were planning on purchasing another home.

May 16th 2013
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Bruce Specter (NvMortgageMan)
#28 ranked lender in Nevada - 7 contributions

As stated here, you must occupy the property for 12 months as your primary residence. Typically, if you intend to intend to buy a 2nd property, you can do so through a non-FHA mortgage.

May 16th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

12 months, except for special circumstances.

May 16th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

Guidelines state 12 months

May 17th 2013
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J.D. Peck (MortgageColoradoSprings)
#45 ranked lender in Colorado - 77 contributions

12 months is the guideline.

May 17th 2013
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Jason Vondrak (jvondrak)
#218 ranked lender in California - 1,741 contributions

Like others have stated, the general guideline is that you must live in a property that has been purchased with an FHA loan for 12 months before you can rent it out.

May 17th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,944 contributions

YES... you must wait at least 12 months to be in compliance with your mortgage contract, except for a major extenuating circumstance. For example, 6 months into the loan, your company goes out of business, and you obtain a new job 200 miles away.

May 17th 2013
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