How long to you have to be “Owner Occupied” for an FHA Loan vs. Conventional Loan?
Or to rephrase, how long would I have to live in the home before I could purchase another home? Thanks
Tags: conventional, Loan, long, Occupied, Owner
Read more about the FHA Loan here.
Or to rephrase, how long would I have to live in the home before I could purchase another home? Thanks
2011/10/09 at 00:26:41
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2011/10/08 at 23:32:25
Your loan docs that you sign at closing would indicate this time frame,normally for an owner occupied property the time limit is 2 years.
You may purchase a home the same day you purchase one home. You would have to determine which is your primary home and which is your second home or investment home with a conventional mortgage loan.
You may have at a maximum of two FHA mortgage loan. In the event you have a change of jobs or other compelling reasons to move like a sick or ill parent. The home you currently have under a FHA loan no longer meet your family requirements. Say you had a 3 bedroom home with 2 children, now there the female spouse get pregnant and have triplets. This place no longer fit your family therefore FHA will allow you to keep your current home and will allow you to purchase another. This can occur within 6 months if she was pregnant at the time of closing.
The other method in which FHA might allow you to purchase another property using FHA and keeping your current FHA house and mortgage would be if you got a job transfer and the commute was not favorable to you.
Now if you decide to move out of your current home and use it as an investment property that is ok also. I have never had a lender ask me nor have I ever told a lender I was moving and converting a property into a rental.
Some on this forum would tell you that in order to do this you must notify your current lender, I have not experienced this.
As you can see there are different reason and time frames in which you may purchase a property.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”
2011/10/08 at 23:22:29
There is no set length of time. you could buy another home at any time…However you can only have 1 owner occupied home mortgage…your 2nd home will require a bigger down payment, usually 20%.
2011/10/08 at 23:06:43
Each lender has their own guidelines. There are no real standards anymore. You’ll need to ask your lender.
2011/10/08 at 22:10:09
Go to FHA.gov or the HUD website and look for answer. Or call them and they will answer the question for you. It may not be as long as you may think, but I am sure at least a year. I imagine it all may depend on your area also.
2011/10/08 at 21:29:45
3 to 5 years