How Long Do I Need to Live on the Property If I Get an FHA Loan?

FHA requires at least one borrower to move into the home within 60 days of signing the mortgage and to intend to keep living there for at least one year. After that year you can move out and rent the home while keeping the FHA loan. You cannot use an FHA loan to buy a property you will only rent out, but you can buy a home with two to four units, live in one, and rent the others from the start. The main limit after you move is that FHA insures only one principal residence per borrower at a time, so your next home usually needs a different loan unless an FHA exception applies.

What does FHA's occupancy rule require?

HUD's FHA handbook sets these rules for a standard purchase loan:

• Move in within 60 days. At least one borrower must occupy the property within 60 days of signing the security instrument, the mortgage or deed of trust.
• Plan to stay at least one year. That borrower must intend to keep living there for at least a year.
• It must be your principal residence. That means the home where you live for most of the calendar year. You can have only one principal residence at a time.
• No investment properties. A property you do not live in is not eligible for FHA insurance. FHA also refuses to insure a loan if the transaction was designed to use FHA insurance to acquire investment property, even if it would be the only home you own with an FHA loan.

Your mortgage repeats the rule as a promise to your lender: you must live there as your principal residence for at least one year after you move in, unless the lender agrees in writing (it cannot unreasonably refuse), the lender decides the requirement would cause you undue hardship, or circumstances beyond your control apply. If a job transfer or other change forces you out early, ask the servicer for written consent before you move.

You state on the loan application that the home will be your principal residence and certify it again on form HUD-92900-A. FHA 203(k) rehabilitation loans can have different occupancy timing, and FHA allows a second home only with its written approval in limited hardship cases.

What happens if you misstate occupancy?

A false statement to get an FHA-insured loan is a federal crime. Under 18 U.S.C. 1010, knowingly making a false statement to obtain a loan insured by HUD can bring a fine, up to two years in prison, or both. HUD can also pursue civil penalties.

HUD's Inspector General reported one such case in 2017. A borrower certified that he would live in a Baltimore home bought with an FHA loan in December 2009, but the property was vacant and advertised for rent six months after closing. HUD filed a complaint under the Program Fraud Civil Remedies Act, and the borrower agreed to pay $10,000 to settle. That case also involved false income information.

If you plan from the start to rent the home out within the first year, an FHA loan does not fit that property.

Can you rent out the home after a year?

The one-year promise in your mortgage runs from the date you move in, not the closing date. Once it ends, you can rent the home and keep the FHA loan. The harder question is your next home. FHA will not insure more than one principal residence for the same borrower, so to buy again with FHA you generally need to pay off the first FHA loan, by selling the home or refinancing it into a non-FHA loan, unless one of the exceptions below applies.

If you keep the old home as a rental and apply for a new FHA loan, the lender can count rent from the home you are leaving only if:

1. You are relocating more than 100 miles from your current home.
2. You have a lease that runs at least one year after the new loan closes, plus proof the tenant paid the security deposit or first month's rent.
3. If you have no rental history on the home, an appraisal shows market rent and you have at least 25% equity in it.

If you do not meet these conditions, the lender cannot count that rent toward your income for the new loan.

Can you buy a 2-4 unit property with FHA and rent the other units?

Yes. FHA insures loans on properties with up to four units as long as you live in one. With a credit score of 580 or higher, the maximum loan is 96.5% of the property value, so the minimum down payment is 3.5%. Scores from 500 to 579 are limited to 90%, or 10% down.

Counting the rent. When you have no rental history on the property, the lender counts 75% of the lesser of the appraiser's fair market rent or the rent on the lease, and adds it to your income. A one-unit home with an accessory dwelling unit (ADU) also qualifies, but ADU rent can make up no more than 30% of the income used to qualify you, and you need savings equal to 2 months of payments after closing.

Extra tests for three or four units:

• Self-sufficiency. The property must be able to pay for itself. The lender takes the appraiser's fair market rent for all units, including yours, and subtracts the greater of the appraiser's vacancy and maintenance estimate or 25%. Your monthly principal, interest, taxes, and insurance (PITI) cannot exceed that amount.
• Reserves. You need savings equal to 3 months of PITI after closing.

Example. A triplex where the appraiser estimates rent of $1,600 for each unit:

• Total fair market rent: $1,600 x 3 = $4,800.
• Net after 25%: $4,800 x 75% = $3,600.
• Your PITI must be $3,600 a month or less, and you need $10,800 (3 x $3,600) in reserves if the payment is at that limit.

FHA loan limits are higher for multi-unit homes. For 2026, they range from these low-cost-area floors to high-cost ceilings:

Your county's limit falls between these figures, except in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where HUD sets higher limits. The requirements of an FHA loan cover credit, debt, and mortgage insurance.

When can you get a second FHA loan?

FHA lists only four cases in which a borrower who already has an FHA loan on a principal residence can get another for a new principal residence:

Homes you originally bought as investment properties do not count against these limits.

What are the alternatives for a rental you will not live in?

If you will not live in the property, use a conventional investment property loan. Freddie Mac allows a maximum loan of 85% of value for a one-unit investment purchase and 75% for two to four units, so plan on 15% to 25% down. The requirements of a Fannie Mae or Freddie Mac loan cover those loans. Eligible veterans and service members can compare using a VA loan for rental income, which also allows up to four units with one owner-occupied.