Updated almost 6 years ago on . Most recent reply
FHA loan & Investment Properties
Hello RealEstate Gurus,
I have a general question, and want to see if I'm just missing simple common sense. Why can't you use an FHA loan to purchase a property to then use that property as a rental/AirBnb? What are the consequences/restrictions and or lender measures to find out? How will they know that's what you are using for? I'm sure there is no Polygraph exam during the approval process 😂. Thank you in advance!
Arthur Voskanyan
Most Popular Reply
@Arthur Voskanyan Arthur Voskanyan, the FHA program was setup to help lower income people achieve home ownership by helping them get loans that banks would otherwise not grant. Investors are excluded from using the program to purchase investment properties.
How will you get caught?
The same way most criminals get caught, by not being very smart. Like for example, coming on a public forum and announcing plans to commit mortgage fraud.
You are not only talking about mortgage fraud, but also tax fraud (hiding income), which involves the IRS. That is more serious.
For your own good, change your way of thinking before it lands you in serious trouble.