If however you are not really moving in and using the FHA low down payment to finance what is really going to be an investment property, that is considered fraud.
C: 612 396-06920
Now lenders will definitely step up the investigation level if the mortgage goes into early payment default because that allows the lender to shorten the foreclosure process dramatically, if they can prove borrower fraud.
So if you make your payments on time but it ends up taking 70 days before you actually move in to the property, itâ€™s very unlikely that they will become aware of the delay, and less likely that you would be subject to penalties or acceleration of the mortgage repayment.
FHA is intended for owner occupancy. If intent is fraudulent, beware that anyone can submit an anonymous report of an incidence to the HUD Inspector General : http://portal.hud.gov/portal/page/portal/HUD/program_offices/oig
The HUD Inspector General has the right to inspect owner occupancy.
Peter Boyle -612 701 6816