Question about low down payment loans

[Keith N.]

Hi guys,

I am planning on purchasing my first investment property (also first property ever) very soon. I plan on owner occupying this property for a short period of time, and then quickly buying a second property and turning the first property into a cash flowing rental unit. I have enough money saved to put 3.5, 5, or even 10% down on a loan and I do in fact plan on using the FHA loan if I can qualify. I know that most pure investment properties require 20% down, which I cannot afford at this point.

My question is about the legality issues of purchasing a property using the FHA loan (or a conventional loan with a low down payment). How many years are you supposed to "intend" on owner-occupying this unit to be approved for the loan. Can I "intend" to live in this unit for 3-6 months and then move out, or do I have to "intend" on living in the unit for 2 years? What could happen if I do actually begin renting out the unit before I am technically supposed to?

I am not trying to say that I plan on breaking the law or doing anything illegal, however I would like to know the specifics of the rules when applying for these types of loans which are normally only given to people who plan on owner-occupying.

Basically, I want to have the opportunity to begin making money as soon as possible.

Thanks!