House Hacking and Qualifying for FHA

[Nessa Lyn]

Hello! I'm a newbie and have yet to buy my first official property. (I inherited my dad's home but the loan is not in my name) 

I found a 5 bdrm home that would be PERFECT as an AIRBNB! I was looking at an FHA loan over conventional as the home is $850k and I don't have $200k as a dp.

My plan would be to live in one room and rent out the other 4 bdrms for one year, and then move out and use it as an STR.

So, my question is, If I was to go the route of FHA, could the Lender take into consideration that I would be renting out the other rooms to help with the monthly debt? Is there another way or loan that you all think would work better?

Thanks!

[Dominick Johnson]

Quote from @Nessa Lyn:

Quote from @Dominick Johnson:

Well first of all an FHA loan only requires 3.5% down payment if you're living in the house, so your down payment on $850k would only be $29,750.

 Yes, I could do the downpayment. It's the qualifying for the monthly mortgage payment that I know I wouldn't qualify for.

Gotcha. I misunderstood your post and thought you were saying that you needed advice on how to make the deal work because you needed $200k as the downpayment. As far as qualifying for the loan, your best bet is to talk to your lender and see what they need from you to get you approved. 

Have you ran the numbers on this? My humble advice is don't do it. $850k is a huge risk for your first investment. I would strongly suggest starting out smaller. SFH that are under $250k are the quickest real estate to sell, so always consider your exit strategy in the beginning before making a purchase.