New to Real Estate · Galloway, NJ · Member since 2020 · 18 posts · 3 votes
I am looking for potential homes to buy and rent out through airbnb. From what I have been reading you need to be buying a primary residence to get approved for an FHA loan....is this correct? If so, would I be able to buy it as a primary and then decide to rent it out after? Does anybody know how strict this is and if there is consequences for renting out a property after securing it through FHA? Thank you in advance.
The usual recommendation is 1 year before you rent out. I don’t know that anyone is driving around checking but they may. One way it could come up is when you put a rental insurance policy on the house.
Lender · Jersey City, NJ · Member since 2020 · 39 posts · 12 votes
5y
Hi Mike, I am a licensed broker in NJ and I can say that the main bank I broker with says, "there is no leeway. Investment properties are not allowed on FHA." I also do private lending, if you have any questions, or if I can help, let me know.
I had a FHA. They clearly told us that we are not allowed to rent out with it. The only time we had someone actually stop by and check our house was In The first two months. It's been 3 years now and no one has come by. So you could get away with it. But not legal.
Realtor · NJ · Member since 2020 · 277 posts · 138 votes
5y
@Mike Harris As noted above, FHA is only for owner-occupied properties (for at least the first year) and there is no legal way to get around it for an investment property. Your best bet is to buy a multifamily, live in one unit for a year, and rent out the other units.