FHA 100-Mile Rule

Did you know? With FHA financing, you may be able to turn your current home into a rental and use that income to qualify for your next purchase—if you meet the 100-mile rule. It’s a powerful strategy many overlook. Have questions about your situation? Let’s take a look.

Think you have to sell your home before buying the next one? Not always…

There’s an FHA rule most people don’t know about

The 100-Mile Rule (Made Simple)

If you move 100 miles or more away, you may be able to:

• Keep your current home

• Rent it out

• Use that rental income to help qualify for your next home

BUT here’s the catch:

If you move less than 100 miles…

You can’t use the rental income

No exceptions.

Never rented the home before?

You still might be able to do it, but:

• You’ll need an appraisal to show what it can rent for

• You need about 25% equity in the home

• It has to be a full appraisal (not online or desktop)

Already renting it out?

Even better:

• You may use the rental income

• You may NOT need 25% equity

• Works for:

  • 2–4 unit properties

  • Guest homes (Accessory Dwelling Units) you don’t live in

One more thing:

This rule applies no matter what loan you have now

Why this matters:

You might be able to turn your current home into an income property…and still buy your next home sooner than you think.

Let’s take a look at your situation (or your client’s)

Most people assume they don’t qualify…until we run the numbers.

(239) 470-6310

chris.heidt@highlandmtg.com

www.highlandmtg.com/chris-heidt