Newbie FHA Loan

[Jacob Kurian]

Hi guys. I'm a new real estate investor just looking to get more knowledge on how FHA loans work. If somebody wants to get an FHA loan, then eventually turn that into a rental (short term or long term TBD), how would that typically work? How long must you wait before being able to rent out a primary residence property from a lending perspective?

[Jonathan Greene]

You will live there for a year, hopefully get some equity so that when you refinance into a conventional, you can cash out, but in this market that is pretty unlikely. In short, you need to stay there a year as an owner-occupant and then you refinance into a conventional, rent both units and then you can use the FHA to do it again on a new one.