First home with mother in law or duplex to help offset mortgage

[Ethan Hansen]

My wife and I are looking to buy our first home. We're looking to buy something with a basement or mother in law apartment or just a duplex to help offset the mortgage payments. Based on my research, I think we will need a loan where part of the rental income can be counted as income towards getting the loan. So far I think we have 2 options: FHA owner occupied duplex loan or a HomeReady Mortgage through Fannie Mae. Are these realistic options and are there any other ways to accomplish what we want? How and what would be the best way to go about doing this?

[Cody Steck]

House hacking is awesome. I have done that myself 4 times now. Getting the rental income counted toward your income, to help with qualifying, is going to be easier on a duplex, rather than something with a mother in law. (Not sure if you can even count it on a MIL place that is owner occupied - you'd have to talk to a lender) 

I've always gone with conventional loans on my properties, but going FHA is not a bad option if it's what can get you into a home sooner than later.