FHA Loan Question - Investment Purchase before Primary Residence?

[Michael Lehman]

My girlfriend and I are currently renters and would like to transition to home-ownership within the next year or so.  We are also, however, interested in starting our investment portfolio ASAP.  As our current lease still has a decent length on it, we are considering buying the investment first.

My question is this: if we purchase a rental property via an LLC that we co-own, is there any downside once we go to purchase our primary residence? I believe we would continue to qualify for FHA financing, but I'm not sure if there are any other first-time-homeowner aids that we would be missing or forfeiting by buying an investment first. Can any realtors or mortgage brokers chime in with your advice?

[Eric G.]

You can certainly buy an investment property first. That wouldn't prevent you from buying fha owner occupied next. However, depending on your financial strength you may need to wait a few years. If you're first time landlords, when you go to buy your primary residence they won't give you credit for the rental income unless it's been on your tax returns for 2 years. So if you buy your primary residence before that two year period you will need to be able to qualify for both mortgages.

That's my understanding. Im sure a mortgage lender will chime in as well.