Question

FHA borrowers are required to establish bonafide occupancy of the property residence within 60 days of closing also required to live in the house for at least 1 year.

a. true
b. false

Answer 1

The statement is true. FHA borrowers are indeed required to establish bonafide occupancy of the property residence within 60 days of closing and live in the house for at least 1 year.

Step-by-step explanation:

The statement is true. FHA borrowers are indeed required to establish bonafide occupancy of the property residence within 60 days of closing and live in the house for at least 1 year.

The Federal Housing Administration (FHA) was created in 1934 to provide federally guaranteed home loans to families who may not have been eligible for homeownership otherwise. To ensure that these families are actually residing in the properties they purchase, FHA borrowers must establish occupancy within 60 days and live in the house for at least 1 year.

For example, if a borrower purchases a home using an FHA loan, they are required to move into the property within 60 days of closing and make it their primary residence for a minimum of 1 year. This requirement ensures that the FHA loans are being used for their intended purpose of providing affordable housing for families.