FHA Loan requirements for 4 plex

[Kevin Heiden]

Hey all, I've been listen to all the BP podcasts for quite some time now and have finally found a property that interests me. I have heard so much about using FHA loans as a means to have a lower down payment but when reaching out to lenders I found a snag. The property is a 4 plex that has a vacant unit that I would be moving into. It was my understanding that to qualify for this type of loan you need to be living on the property. However, the lender mentioned to me that you cannot rent out any of the units for the first year (in addition to be living on the property). I was not aware of this and was confused as it sounds like most investors on the podcasts rent to tenants immediately. Maybe I've been hearing something different but has anyone else come across this and what are some ways to get around it without taking a conventional loan for 20%+ down? Thanks!