Brandon, FL · Member since 2014 · 29 posts · 5 votes
So, can I buy a home with an FHA loan, work on it for a couple of years while living in it, then move out and rent it as a short term vacation rental? Is this unethical?
I would want to move back into the home and retire there once my vacation renters pay my mortgage off. I'm thinking coastal Fl 5/3 home.
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
12y
Per the rules that I have been told, personal properties FHA only require one year residency. We have done very well turning our personal properties into rental when my husband is transferred in addition to pure rentals. We have done so in both va and conventional 5%.
My only concern is have you thought about conventional 5%. There is no funding fee and when the loan to value reaches 78% the pmi falls off. Nether of which happens in the FHA for only 1.5% more down.
On the blog I am starting I talk about experience and thoughts with this blog. Our next step is going to be buying a vacation rental to do this in this market.
Brandon, FL · Member since 2014 · 29 posts · 5 votes
12y
I haven't thought of that nor did I know it was an option. So you are saying with decent credit, I should be able to secure financing on say a 300k property with 5% down thru a conventional home loan? Would I still need to have it as a residences for one year or is that only an FHA thing?
Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
12y
What you are describing is entirely legitimate.
I second the notion of visiting a local credit union or two. Just lay out for the loan officer what you are trying to do. There really isn't any need to be coy about it. If they can help you, they will, and if for some reason they cannot, they will lay out why.