FHA loans and the “rules”

[Tim Adams]

Hey everyone, I'm working on getting into the real estate investing world and I just want to make sure that I understand a rule regarding FHA loans to ensure I use it correctly and go forward with the right information. I know it true that with an FHA loan you are required to live at the home for one year in one unit while renting out the other units (house hacking) but does an FHA loan also cover a single family home if I rent out individual rooms in the house? Does this angle qualify for this type of loan and allow me to use the same advantages on down payments and allow me to get into real estate even without a multi family home purchase? Looking for any and all thoughts and input. Thanks!

[Ash Hegde]

You can buy a single family with FHA and rent out rooms. The main difference between the two scenarios is that with multifamily you can count rental income from other units to help you qualify for the loan, and with single family you can't count room rental income.