What is the FHA 100 mile rule?
The FHA has a requirement that specifically states the new primary residence must be 100 miles away from the old departure residence. This means you cannot keep your house and then turn around and buy another one a few miles away using an FHA Loan for the acquisition of the new primary home.
How do lenders check primary residence?
Lenders usually stipulate that homeowners have 30 days after closing to occupy a primary residence. To verify the person moving in is actually the owner, the lender may call the house and ask to speak to the homeowner. A tenant is likely to respond that the owner lives elsewhere.
Can I get second FHA loan?
If you have an existing FHA loan, you may wonder if you can get a second FHA loan to buy a new home. There is no limit to how many times a borrower can get an FHA loan. But there’s a catch: You can only have one at a time unless you meet specific criteria.
How many miles away do you have to be from your primary home?
Lenders generally want it to be at least 50-100 miles away from your primary home, though exceptions are allowed if it makes sense. For example, if you live inland and have a beach house 30 miles away. It should also be a single-unit property, for obvious reasons. And you should occupy it for some portion of the year.
What are the requirements for a primary residence?
For the property to qualify as a primary residence, the following criteria must be met: 1 You must live in the home for the majority of the year. 2 The home must be located within a reasonable distance from your place of employment. 3 You must begin living in the house within 60 days of closing.
When to use 100 Mile Rule for rental income?
Departure Residence Rental Income: Using rental income from a property being vacated by the borrower: If rental Income is being derived from the property being vacated by the borrower, the borrower must be relocating to an area more than 100 miles from the borrower’s current principal residence.
When do you have to start living in your primary home?
The home must be located within a reasonable distance from your place of employment. You must begin living in the house within 60 days of closing. If you refinance the mortgage for your primary home, you must be able to prove your residence through documentation (e.g., tax returns or government identification).
