Owner Occupant
I have a question...
Say you purchase a 3-unit aparment building through the FHA because you only need 3% down and you therefore you agree to make it your primary residence.
What if for some reason or another you are unable to move into and live in this property. Are there any ramifications or won't anyone care as long as the mortgage is paid?
Thanks,
DrZ
Anybody...
In recent years on FHA loans, at the settlement table you have to sign a paper certifying that you will occupy the property for at least one year. I guess too many people were using FHA low down financing for investment purposes. I do not know what would happen if you did not move in; unexpected events do happen in people's lives. My guess is that nothing would happen unless you were working the system ie. repeatedly using FHA and not moving in. I do not know how well these things are enforced.
If it is found that you never moved in and made the house your primary residence the loan could be called due. But in most cases nothing will happen as long as you keep up your payments.And also be careful how you insure it too.You cannot carry insurance on content if you do not live there. [ Edited by mrare68 on Date 01/17/2005 ]