Is it possible to get an FHA loan to purchase my first home if I do not intend to live in it?

Asked by Abbie, Palmdale, CA Thu Sep 25, 2008

It's a buyer's market so I'd like to purchase now, but I can't move to live there for at least a year. Would I be forbidden from renting the property? If I need a different kind of loan, will this require a larger down payment? I have a credit score of 750 but I only have about 15,000 for a down payment. Could I get financed for a home around 130,000-140,000?

Help the community by answering this question:

+ web reference
Web reference:


Other/Just L…, , Fleming Fitch Grant, Holly Hill, FL
Thu Sep 25, 2008
Lender answer:

Unfortunately no. FHA guidelines require homes with an FHA insured mortgage to be owner occupied. Any FHA lender must certify that you will occupy the dwelling within 60 days of closing and thereafter continuaously occpy for at least 1 year.

FHA is sudden death on occupancy fraud. You would be better off going with a conventional loan - perhaps priced as a second home if you will not rent it out until you are able to move in.

By the way, that is a smart question to ask BEFORE applying for an FHA insured mortgage
2 votes
Dyanna, , California
Thu Sep 25, 2008
There are plenty of loans that aren't FHA that you might qualify for. I have a client that is putting down 5% and documenting his income. There are plenty of ways to get a loan, you just need an experienced agent and loan officer. What area are you looking to move to?

Good Luck!
1 vote
Ryan Morrow, , Lancaster, CA
Fri Jan 2, 2009
FHA loans are only for owner occupant purchases. If your sole intention is to buy this and use it as a rental you will need to purchase this as an investment property purchase.... Be prepared for slight higher cost in obtaining the loan, higher rates, and larger required down payments.

NOTE: There are no Mortgage Insurance companies lending on Investment properties in CA declining markets. You will need to put 20% down or find a portfolio lender who will allow you to put down less. Portfolio will cost you MUCH more (there are few left lending, most were wiped out by the credit crisis)
Best of Luck,
0 votes
Cindi Wolf,…, , Lancaster, CA
Fri Oct 24, 2008
Luckily, your $15,000. is looking better for a down payment amount as home prices go down. You can get a really nice home home for that price range and at this time that is a good percentage down.

Give me a call if you would like further information. I am a resident of the AV for almost 20 years and it really takes an Agent that is here in the trenches daily to help navigate this market.

Best Wishes,

Cindi Wolf
Troth Realtors
0 votes
M.D.J, , Los Angeles, CA
Thu Sep 25, 2008
10% minimum down payment is needed for investment properties but before going down that route lets discuss your situation more to make sure owner occupied is no longer an option.

Feel free to contact me and good luck to you.
0 votes
Search Advice
Ask our community a question
Home Buying in Palmdale Zip Codes

Email me when…

Learn more