Can only one owner on an FHA loan occupy the property?

Asked by Gtbenjamin23, 10550 Thu Aug 9, 2012

My husband and I are currently living in NY and want to purchase our home in FL. We need to get a FHA loan because of the low down payment. I know that the FHA requires owner occupancy; my question is can I occupy the home in FL while my husband remains in NY and work for a year? We would both be on the mortgage paperwork, but I would be going to school and not working for a while, while I'm in FL.

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Gregorio Den…, , San Diego, CA
Fri Aug 10, 2012
Technically, your husband would be a non-occupying coborrower:

4155.1 2.B.3.a
"A non-occupying borrower transaction involves two or more borrowers
where one or more of the borrower(s) will not occupy the property as his/her
primary residence."

Therefore HUD HUD 4155.1 2.A.2, states that you are allowed maximum financing (3.5% down) since you meet one of the following criteria:

"...maximum financing, as described in HUD 4155.1 2.A.2, is available for

• borrowers related by blood, marriage, or law, such as
− spouses
− parents-children
− siblings
− stepchildren
− aunts-uncles, and
− nieces-nephews, or

• unrelated individuals who can document evidence of a longstanding,
substantial family-type relationship not arising out of the loan transaction. "

Assuming he qualifies as a non-occupant coborrower, you should be fine.
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Ines De La C…, Agent, Marlton, NJ
Fri Aug 10, 2012
Hello Gtbenjamin23,
Thank you for your question. You should ideally contact your loan officer who will give you their guidelines for approval. If you do not have one let me know and I will direct you to a loan officer in my circle.
It is my understanding you can only have one FHA loan at a time. You mentioned you live in NY do you own that home? Are you renting it? Live with family? Explain what your plans are to loan officer and go from there.
Good luck!
Best Regards.
Ines De La Cruz
RE/MAX Connection
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Laquita Baez, , New Jersey
Fri Aug 10, 2012
You should be able to. Usually the FHA owner occupancy disclosure means that the purchasers are purchasing the property with the sole intentions of occupying the home as opposed to non-owner occupants like investors that purchase homes with the intent to flip or rent out.

Laquita Baez
Licensed Realtor Selling in NJ and GA
Weichert Realtors
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