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Can I Apply For FHA Mortgage as Non-Resident?

by Sarah
(Illinois)

Do you have to be a resident to apply? We currently live in Illinois are are looking to move to GA but need some assistance purchasing our first home.


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FHA 203b Home Loan - Owner Occupancy Requirements
by: Jeffrey

Hello Sarah;

Thanks for stopping by my website and asking your questions.

If I'm understanding your question correctly, you want to know if you have to be a resident in the state that you want to buy a home in.

You indicated that you plan to move from Illinois to Georgia.

First off, you will love the winters in Georgia when compared to Illinois. I can speak from experience on that one having been a Michigan resident for 57 years and now living in north Florida.

To buy a home using the FHA 203b home loan there are some requirements you have to meet in order to apply.

It's really called owner occupancy vs non-owner occupancy. FHA does have certain guidelines you have to fulfill.

Rather than me just trying to explain it to you, I'm quoting the to you from the HUD Handbook --Mortgage Credit Analysis for Mortgage Insurance on One- to Four-Unit Mortgage Loans (4155.1).

In chapter 4 section b you will find your answer to the question you have.

=====BEGIN QUOTE=====

HUD Handbook 4155.1 4.B.2.b

FHA Requirement for Establishing Owner Occupancy

At least one borrower must occupy the property and sign the security instrument and the mortgage note in order for the property to be considered
owner-occupied.

FHA security instruments require a borrower to establish bona fide occupancy in a home as the borrower’s principal residence within 60 days of signing the security instrument, with continued occupancy for at least one year.

=====END QUOTE=====

So if you're planning on moving to Georgia, you may want to wait and apply of the FHA mortgage when you're move is within 60 days or less.

You can apply before moving but many requirements will have to be met. Your job situation will be a big one. FHA will have to verify to have employment that will be continuous. If you're moving for a job transfer, they may want to see letters for each borrower in order to verify employment.

Very likely that will be your biggest hurdle. So if you can make a good case as to the reason for the move and provide proper documentation you may not have any problem.

Just be sure to explain all of the changes you're planning to make to your lender at the time of application.

You could even get things pre-approved so you have a loan approval before you move so you can start looking for a home.

To get started click here to apply online for a FHA home loan.

I hope you find this answer helpful. Please feel free to respond to this reply if you have other questions.

Regards,

Jeff Ragan

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