FHA loan for investment property?

[Caleb Pratt]

Is it possible to use a FHA loan to gain investment properties? I currently do not own any real estate and have been looking to get invested. I've been listening to the podcast for a little now and I know there are many ways in which to obtain real estate, I'm just wondering if this is a strategy and/or option that could be used. Thank you!

[Joel Allen]

@Caleb Pratt

FHA loans are intended for the purchase of a primary residence. FHA guidelines require a borrower to establish bona fide occupancy in the home as the borrower's principal residence within 60 days of signing the security instrument, with continued occupancy for at least one year.

With that said, there is an opportunity to house-hack (example: purchase a multi-family home with the FHA, live in one unit, and rent out the others). Or, you could purchase the home, live in it for a year to fulfill the residency requirement, and then convert it to a rental.