FHA Loan Pros & Cons?

[Vince Char]

Hi All,

I am brand new to the bigger pockets community and real estate. I want to get involved in rental properties. Just wanted to ask a question to a hypothetical situation. If I were to house-hack and purchase a multifamily home and stay in one of the units, is it a wise decision to use a FHA loan to purchase the property? I understand that you only need a 3.5% payment upfront, but I have read the monthly mortgage insurance payments are high and the interest rates are higher. I would only live in the property for a year to meet the loan requirement and then rent out the last unit. Is it worth using the FHA or does the mortgage insurance and higher interest rates make it not worth it? I have also read that you can FHA Streamline Refinance when you move out of the property, but not sure how that works yet. Any input would be much appreciated. Glad to be apart of the community and apologize if I am misunderstanding any of the real estate concepts I brought up.