My wife and I closed on a duplex purchase using an FHA loan last month. Our plan is to rent out our current home for income and move into one of the duplex units to fix it up over the next year, it’s in poor condition and needs repairs before being “rent worthy”. However, we just found out my wife is pregnant and with the baby on the way we are concerned about the duplex being large enough for our growing family. Obviously this situation is not ideal because we’ve already given notice to the current renter in the duplex unit we plan to occupy, listed our current home as available for rent and started screening potential renters, and began boxing up our things into storage in preparation of the move.
I’ve read that sometimes exceptions can be made for the FHA occupancy requirement due to increasing family size, and I’m wondering if this is a possibility for our situation? Should we contact our mortgage provider and ask for guidance, or would we be better off not saying anything and hoping they don’t check the occupancy status? Is this something we should seek legal advice for, or are we exposing ourselves to possible issues just by bringing the subject up rather than not saying anything and hoping we don’t get caught?
Worse case scenario we will just move into the unit, but it’s too small for our growing family and I am curious what my options are in a situation like this. There is a lot happening at once for us. Please offer advice!