As a homeowner looking to secure an FHA loan, you might come across the term “FHA Occupancy Agreement.” This is an agreement between you and the Federal Housing Administration (FHA) that outlines your obligation to occupy the property you are purchasing with an FHA loan as your primary residence.
The FHA Occupancy Agreement is a vital document that helps the agency ensure that it is providing loans to eligible borrowers who intend to use the property as their primary residence. The agreement requires you to sign a statement promising to occupy the property within 60 days and maintain it as your primary residence for at least one year.
The FHA Occupancy Agreement is designed to prevent borrowers from using FHA loans to purchase properties that they do not intend to occupy or use as their primary residence. If you violate this agreement, you may face serious consequences, including foreclosure on the property and legal action from the FHA.
It is important to note that the FHA Occupancy Agreement applies to both single-family homes and multi-unit properties. If you are purchasing a multi-unit property with an FHA loan, you must live in one of the units as your primary residence.
To ensure that you are fully aware of your obligations under the FHA Occupancy Agreement, it is essential to read the document carefully and ask any questions you may have before signing it. You may also want to consult with a real estate attorney or a qualified housing counselor to ensure that you fully understand your rights and obligations under the agreement.
In conclusion, the FHA Occupancy Agreement is a crucial document for borrowers seeking an FHA loan. It outlines your obligation to occupy the property as your primary residence and maintain it for at least one year. Be sure to read the agreement carefully and consult with experts to ensure that you fully understand your obligations. By doing so, you can avoid potential legal and financial consequences down the road.