FHA loan and Student Housing

[Lukas Katko]

Hey BP,

Recently I posted a deal analysis on a student housing property for sale near my area. I'm a student at the college the property is renting out to, so it's close and convenient.

Here is my question:

Can I use the 3.5% down FHA loan with 6% Seller assist to acquire the property?

I'd assume the main obstacle is that FHA loans are based on actually living in the property, which I probably won't be doing. Any thoughts? (and is it illegal to get an FHA loan and then not live in the property?)