Active-duty service can change how FHA applies physical occupancy.
FHA recognizes that military orders can prevent a borrower from physically occupying a home even when it is genuinely the borrower's principal residence.
Active-duty borrower
FHA can treat military personnel as owner-occupants when they cannot physically reside in the property because of Active Duty if a family member will occupy the property as a principal residence, or the borrower intends to occupy the property upon discharge from military service.
Distance and documentation
The Handbook requires documentation of Active Duty status and military orders showing the duty station is more than 100 miles from the subject property. If a family member will not occupy, the lender documents the borrower's intent to occupy after discharge.
Official FHA policy baseline
Primary source: HUD/FHA Single Family Housing Policy Handbook 4000.1. HUD identifies Handbook 4000.1 as its consolidated, comprehensive source of FHA Single Family policy. Current update published August 12, 2026.