Is it possible to do FHA now and USDA later, or both?
Hi, I truly want to undertake REI with no intent of committing mortgage fraud --- but I want to understand more about FHA and USDA (still trying to build my credit and no investment property yet, with 10k allotted to invest). I've been looking at FHA and USDA, aware that you cannot own any other home when using USDA, and USDA cannot be used for an income-producing purpose (also has household income limits per household size but amounts vary per county). With FHA, you're required to stay at the property as primary residence for a minimum of 60 days or longer (correct me if I'm wrong), and can use it as an income producing property thereafter.
My husband and I are totally new to this and running a few scenarios on how to start out exactly --- we want to start with owning smaller multi family properties (duplexes, quadplexes, etc. but no sfh) then with the end result owning bigger apartment complexes years later. Definitely open to feedback and appreciate anything else we need to consider that would ultimately help contribute to making this real. :)
Scenario 1: We have 3 children (5 of us total) and currently living in an apartment for $890/mo (rent includes electric, gas, water/sewer/trash). We can go FHA on a duplex, rent the other side to cover our expenses. Eventually, we can get a SFH to live in later,but can we use USDA on this SFH while renting out the duplex?
Scenario 2: Get a SFH first via USDA (100k or less) to cut down on living expenses then start investing (FHA) in small multi family properties?
Scenario 3: Stay as a renter where I am now and wait until my credit score gets higher (630 now)? I feel like I'm just running in circles, and I can't take any chances on soft inquiries on my credit asking mortgage lenders these possibilities. Thanks BiggerPockets in advance!