How does the FHA know when you've moved in to your new home? Do they send people to spy on you? (loan, approve)
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I'm hoping someone might be able to tell me how the FHA verifies if you've moved in to your new home (purchased with an FHA loan) within the required 30 days after closing. Do they send people to spy on you? I know that sounds pretty silly, but I'm wondering--do they? Or do they just check to see if you've forwarded your mail to the new address and changed your address on all your credit cards?
I ask because I want very much to purchase a house in the county next to mine before the government's new home tax credit expires (assuming that they don't renew it for next year). However, I have a good job that I don't want to leave yet (especially not in this economy) and there is no way I'm going to do a two and a half hour commute each way from the location of my new house to my current job.
The house I want to buy is really just a cottage and the mortgage payments would be so cheap I could pay them and rent on my current apartment with no problems, until I'm ready to move to my cottage--preferably some time between March and July of next year. And of course, I would drive up every weekend to check on the house, get my mail and do landscaping, which would be no trouble because the drive is only an hour when you're not in rush-hour weekday traffic.
I'm a very law-abiding person, though, and I'm just wondering--would I get in trouble for doing this? I fully intend to live in the cottage as my primary residence, I just don't want to move in for another six months. If they found out that I'd moved half my things there but wasn't actually sleeping there every night, would I get in big trouble?
Any help you might would be much appreciated. Thank you!
I would be willing to bet that that so long as the utilities are in your name and your mail is going there and there is no evidence of you trying to turn the new purchase into an INCOME PROPERTY there is nothing to worry about.
FHA mortgages are not designed to help investors create more units for rental and I suspect that is the only reason they have the 30 day move in rule...
I don't think FHA will approve your loan unless you have either sold your current property or unless you can demonstrate (through a signed lease agreement) that your current property has been converted to an income property. Maybe one of the mortgage experts can elaborate more because I'm guessing, but I think that's right.
But to answer your question, I doubt anybody will physically check to see if your are living at the new address.
Bouncing off of this question...Are short leasebacks ok with an FHA loan? Like if a seller wants up to 45 days to move out, does the 30 days move-in thing start after the leaseback is up or as soon as you close?
I would be willing to bet that that so long as the utilities are in your name and your mail is going there and there is no evidence of you trying to turn the new purchase into an INCOME PROPERTY there is nothing to worry about.
FHA mortgages are not designed to help investors create more units for rental and I suspect that is the only reason they have the 30 day move in rule...
This is an accurate assumption But as with any rule like FHA's audits are done from time to time where someone dose check. I wouldn't worry to much move stuff in have utilities on do yard work. If they complain then explain the situation not like u are trying to screw anyone.
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I'm a very law-abiding person, though, and I'm just wondering--would I get in trouble for doing this? ....
Remember the FHA isn't giving you the loan, your lender is. The lender is giving you better terms because the FHA is guaranteeing the loan will be paid. This means the FHA is going to screen you first to see what kind of risk you represent as well as insuring everything meets the federal requirements for this loan.
So your issue will be in explaining how you plan to live in a house located 2.5 hours from where you work.
I don't think FHA will approve your loan unless you have either sold your current property or unless you can demonstrate (through a signed lease agreement) that your current property has been converted to an income property. Maybe one of the mortgage experts can elaborate more because I'm guessing, but I think that's right.
No need to demonstrate anything when the OP is renting.
I would move some stuff into the new house, but I don't think the OP is trying to do anything illegal so I don't think there would be an issue.
I know you are not trying to game the system, but technically it's called "occupancy fraud". Pretty much to discourage investors and people who want to buy rental property.
Remember the FHA isn't giving you the loan, your lender is. The lender is giving you better terms because the FHA is guaranteeing the loan will be paid. This means the FHA is going to screen you first to see what kind of risk you represent as well as insuring everything meets the federal requirements for this loan.
So your issue will be in explaining how you plan to live in a house located 2.5 hours from where you work.
BINGO! This is the correct answer.
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