FHA refinanced home, moving- Can i rent?

[ajharish]

What is the name of your state (only U.S. law)? Florida
Hi,

i refinanced FHA loan February 2012 ( i have lived at my current residence since April 2011). Now, i am moving to a different city because of new job opportunity. can i rent my current house?

 

[sandyclaus]

What is the name of your state (only U.S. law)? Florida
Hi,

i refinanced FHA loan February 2012 ( i have lived at my current residence since April 2011). Now, i am moving to a different city because of new job opportunity. can i rent my current house?

Not legally and not yet. An FHA loan requires the home, or one unit in a multi-family complex, be occupied by an owner for at least ONE YEAR after you refinance, because your loan was underwritten based on owner-occupancy. You would be in violation of the FHA loan agreement (they could call the loan), and your homeowner's insurance would be voided if the property is not owner-occupied.

 

[HUD-1]

4155.1 4.B.2.b
FHA Requirement for Establishing OwnerOccupancy
At least one borrower must occupy the property and sign the security
instrument and the mortgage note in order for the property to be considered
owner-occupied.

FHA security instruments require a borrower to establish bona fide occupancy
in a home as the borrower’s principal residence within 60 days of signing the
security instrument, with continued occupancy for at least one year.
***
However, given the fact that your job situation has changed, you could write to your local HUD Homeownership Center, describe the situation and ask for relief from the requirement. I think it has a very good chance of being granted. From a practical standpoint, I have not heard of HUD or a servicing lender calling a loan that is current due based on rental occupancy. Your intent was to occupy the home and you did for some time until your job situation changed.

 

[AZHomeowner1]

What about Conventional Refi AZ? Seems unreasonable?

A year is a long time in today's economy to not move after a refi. Is it not permissable to move and rent one's home after refinancing under a Conventional loan in AZ also? Especially if one is offered a job elsewhere and making more income?