using usda loan for investing

[Josh Fincher]

hello,

I'm wanting to buy a 4 plex building using a usda loan and occupy it for a year then find another one and move into it, also, for a year and, also, with a usda loan.  rinse and repeat until I feel like I have enough cash flow to live comfortably and still save for other investments.  My problem is I'm not sure if it's legal.  I've looked everywhere and even downloaded a usda guideline booklet and cannot find anything about it except to say that you must occupy the building, but does not say for how long or if you can buy another property while already having one with usda.  can anyone please help me with this?  thanks..

[Elizabeth Colegrove]

USDA is only for first time home buyers. So that is a great plan if you area qualifies. Your are right that it only has a one year requirement as a personal. The problem is afterwards you would no longer qualify. That being said you could than qualify for a FHA loan which is 3.5 %. Personally after the USDA I would start using Conventional 5%. The pmi falls off when you reach 78% loan to value where as FHA it never falls off.