FHA loan to purchase multifamily

[Josh Thompson]

I am saving money to purchase a 2-4 unit home using an fha loan. My location is central NJ but there seem to be more affordable multifamily homes south of me. I understand that to use an fha loan you need to live in the property for at least a year. Does anyone know if I can get away with living in the property on just weekends? I work in NYC so if I buy a property more south of where I live it would be more convenient to stay in my mother’s home during the work week. I am only interested in the property for income, not living, but I do not have the money to put 20% down on a regular loan. Also, any general advice about fha loans and renting is appreciated, thanks!

[Von S.]

Congrats on getting close to your goal. I know two instances of people buying through FHA. One person did live at their property just on the weekends and after building a 20% equity in that property, refinanced to a conventional loan so they weren't tied down to the property. The other person just had mail delivered to a unit where he allowed his grandmother to live, rent free. Perhaps you could stay in a unit with two bedrooms-- get a roommate for the other room and save money that way. Once you build equity, switch to a conventional loan.