Buying a property under personal FHA loan and renting under LLC

[Mayur Patel]

Looking for advice. I am looking to invest in PA. However, getting loans under LLC is very hard in PA. As a result, seeking option to purchase the property with 20% down with a FHA loan. Getting the mortgage under my name; then rent the properties with agreement with the LLC.

LLC would be renting the property first from me, and then subletting under its own agreement. Please let me know if that is allowed according to PA Laws.

Thank you.

[Charlie MacPherson]

It's not clear in your post, but if you're planning to buy with an FHA loan and then rent the property out, you might be committing mortgage fraud.

I'm no longer a Realtor, but as I recall, FHA is for owner-occupied properties only.  I believe that it has to be OO for 12 months, barring extraordinary circumstances, like getting transferred out of the area for work.

FHA has a whole department dedicated to "occupancy fraud" and given that it's a felony, I'd steer very clear from it.