Profile picture for buddhaluv1

Does FHA verify/visit primary residence for a 1st time home buyer?

I was told the buyer has 30 days to move in after closing and FHA will check on this.  How do they make sure the buyer is using the home as primary residence?  Do they really care if the mortgage is being paid? 
  • June 16 2010 - US
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Answers (7)

Profile picture for ABBAUSA
If you stated that this was to be your primary residence and it's not really.....You have committed a mortgage fraud.

There is time frame so ask your lender or direct you question to the FHA.... see next part

FHA-Insured Mortgages are granted to "Owner/Occupants Only," but the "Key Word" here is GRANTED! to get an "FHA Loan," a Buyer/Borrower must certify the INTENTION to use the Home being financed as his/her PRIMARY RESIDENCE and that it is not being purchased as a Rental nor "To-Be-Flipped" property!

Obviously you stated your intentions at the time of loan closing,and have proven to be consistent with those stated intentions by having lived in the property as your Primary Residence for many years. HUD/FHA considers one (1) year of primary residency as having satisfied the "Owner/Occupant" requirements of the FHA-Insured Mortgage guidelines!YOU ARE FREE TO PURCHASE ANOTHER PRIMARY RESIDENCE WITHOUT REFINANCING YOUR CURRENT  HOME! THE EXISTING  FHA LOAN MAY STAY IN  PLACE & YOU CAN NOW CONSIDER THE PROPERTY AS A RENTAL UNIT--AND YOUR NEW HOME CAN BE PURCHASED AS AN "OWNER/OCCUPIED" PROPERTY AS IT WILL NOW BE YOUR PRIMARY RESIDENCE!


Of course they want it paid.

Good Luck!

James Callas - Realtor®
  • June 16 2010
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Profile picture for wetdawgs
Yes, they care!   But, they are unlikely to knock on your door. 

Please don't even think of committing mortgage fraud, if you do, your new accommodations are not likely to be as comfortable as those you've been thinking of purchasing.
  • June 16 2010
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James,  Great information that I wasn't aware of! Thanks for passing it on!
  • June 17 2010
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Profile picture for ranjanclan
HUD, however, does not actively check on investor and principle residence status.  Even if they do find out it was fraud, they allow the investor to keep the property.  An investor purchased a house during the homeowner stage of a HUD sale.  When I contacted the realtor, they told me it was fraud and gave me the HUD number.  HUD reaffirmed that the investor would keep the property (we knew of a young couple who put in a bid) and said that they are not required to inform anyone of the outcome of an investigation, if any takes place. 
  • August 26 2012
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It's a good thing this guy didn't put his real name in his profile.....
  • September 06 2012
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Profile picture for ining7
Yes, they do check.  Our new home closed on 10/30/13 and an FHA person (showed me their badge) came and knocked on our door asking if so and so lived here.  I said yes, that's me.  They thanked me and said that was all and left.
  • April 16 2014
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Profile picture for ranjanclan
I contacted both of my U.S. Senators and they said there is nothing they could do about it. The FHA simply replied that they never discuss cases. 
 
  • April 16 2014
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