The answer to this question will depend on what your mortgage contract says. So, that’s the first place to look for the answer. If your mortgage contract isn’t available, the next option is to call your mortgage company and ask them. If anyone can give you the exact answer – it’s the company that handles your mortgage.
However, if for some reason you don’t want to or can’t do any of the above – I’ll share some details about how long I had to live in my house hack. Maybe you’ll be able to find valuable information about my situation.
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How long did I have to live in my house hack?
The owner-occupied (meaning I’m going to live in the property) financing I used to house hack required that I live in the property for 1 year before I could move out and rent my unit.
When I was going through the process of purchasing my first house hack, I had the option to switch from owner-occupied financing to an investment property loan. That switch would have removed the requirement of me having to live in the property for 1-year. However, if I had switched my loan to an investment loan – it would have cost me an additional $27,000 in additional funds needed for closing (an increase in the down payment amount).
If I had the additional money “laying around” then it may not have been a bad idea if I wanted the extra flexibility of not having to live in the property for 1 year. But, for me, that added flexibility was not worth it. Especially because the unit I was planning to live in for the house hack required a lot of cleaning and renovation in order to be comfortable.
How long should you live in your house hack?
House hacking a duplex was one of the smartest financial and educational decisions I’ve ever made, so my answer to this question comes with bias. I believe that you should live in your house hack for as long as possible before moving out. The longer you’re able to take advantage of reduced rent and the additional rental income – the better off your life should be. Even if you re-invested every bit of positive cashflow back into your house hack – you’d either own a very updated home with new systems everywhere (so low stress when you go to rent it out as long as you find good renters) or you’d be able to charge a premium for your property whenever you choose to sell it (since it’s likely to be better than the majority of properties in your area).
In this post: “What to do after house hacking” – I talk about what I did after moving out of my house hack and what I wish I would have done. That post gives some insight into life after house hacking, as well as allows you to learn from what I wish I would have done.
Frequently Asked Questions
How long do I have to live in my house hack with an FHA loan?
Most FHA loans require owners to live in the property for a minimum of 1 year before being able to move out of the property and rent it. However, I’d recommend checking your mortgage contract or contacting your mortgage company for the answer just in case your situation is different.
Can I house hack without living in it?
No. If you purchased a multi-family property for house hacking and chose not to live in it, it would basically be a rental property (so you wouldn’t get the benefits of house hacking). If you told the lender that you were going to occupy the property and said that so you could get a lower interest rate or better mortgage terms, but choose not to do that and use another property for your primary residence – that’s fraud (don’t do that)
