HUD rehab unit

I closed September 30 on a HUD house. I bid it as an investor, and used o/o for financing (as recommended by my broker since I am living in the property for a while to determine thw rehabs needed). How long (as o/o) do I need to wait before putting a HUD house up for rent? I am not interested in committing fraud! Thanks!

Did you use HUD (FHA) O/O money or plain old lender money on O/O rates?


conventional financing, not VA, FHA, HUD, etc.—plain old conventional loan

I don’t think that any lender has established a “gotta live here XX days” rule (with the exception of some special funding programs). I would think that several months should qulify, certainly a year.

Did you read your closing documents?


I’m still reading them, but have found nothing yet. I know there is no prepayment penalty, its set up that way so I can refinance once rehab is complete. I’m hoping to put the house up for rent in a few months, not a year. Guess I should keep reading…

Your loan paperwork probably has a occupancy statement that you signed. Words to the effect that: borrower has applied for a home loan as an owner occupant and his signature below certifies his intent to occupy the premises as a primary residence for a period of not less than 12 months.

If you signed one of these, then live there one year to be safe. Some lenders do check and will call your loan due and payable in full if you are not occupying the property and have no extenuating circumstances (such as job transfer out of the area) to explain why.

Thank you, Dave T. You just helped me with several decisions–one of them is to dump the broker. I do have other options, one is to rent another unit rather than this one and continue living there…