FHA Loan/House Hacking Question

[Brandon Wulff]

My friend and I want to partner on a four Plex, but because he doesn't have the best credit history, and I do, I was wondering if we were allowed to do this...

I would apply for the FHA Loan and I would put the 3.5% down, my partner would fund the necessary repairs and match the down payment. Would we both be allowed to live in one of the units?

Another question, am I allowed to rent out one of the rooms in the unit that I live in, I.e. get a roommate and charge him rent?

[Winston Covington]

First and foremost...Location, location and location are the first 3 rules of Real Estate. If YOU aren’t comfortable with buying in these areas - neither would most tenants want to rent there.

You can definitely buy a SFR with FHA financing, that's how a lot of folks buy their first home. You can also rent out rooms but remember that you must have the intent of living in the home as your primary residence.

Last, I would contact one of the lenders on Bigger Pockets and have them walk you through FHA loan requirements and get a good understanding of the do's and dont's.

Best of luck in your future purchase.