Transfering ownership of owner-occupied duplex

I recently bought an owner-occupied duplex using an FHA loan. I don’t want to live in the duplex forever, but I’d like to keep the property in my rental portfolio. Is there a way I can move out (therefore making it non-owner occupied) but still retain ownership of the duplex without triggering the due-on-sale clause or anything like that? Do I have to technically “buy myself out” of the FHA loan or what?

I have never used FHA loans, but the one for my personal residence only required 1 year OO. I think the issue is intent. If you intended to live in residence when you applied for the loan and actually lived there for some time, there is no case for fraud. No one should expect you to live in the property for the loan term.

I agree with BLL. I used to be a loan officer and unless things have changed there is no problem with moving out of a property you own after a year or two. Check with an LO to be sure, but I know that intent was the issue back when I was in the lending business. The Due On Sale clause is not a concern at all. The ownership is not changing - only the address of the owner.

My CPA says that it is a good idea to file your taxes for at least one year with your home address being the place you purchased owner-occupied.


My wife and I plan to live in the duplex for a couple of years at least, and then I’d like to transfer ownership to my LLC when I move out.