FHA for my first REI, but plan to move in to my boyfriends house?

4 Replies

I plan to buy my first REI next year with an FHA/conventional loan, in the 300k range. Not sure if this will be a single family or a multifamily, but I plan on living there.....unless I move in with my significant other.

I am worried that this will throw a wrench in my plans as far as financing goes. He recently bought a house and if I moved in I would plan on paying rent. I already pay rent right now for an apartment, so that would not be a change in my finances. But if I were to buy a house with an FHA in the same time period as moving in with him, would that be possible/what other financing options would you consider? Could I put 5% down for a conventional loan, even though I would plan on using it as a rental property?

Hi Leah - congrats on choosing to invest in real estate - buying your first investment property is a big step and can be exciting and overwhelming at the same time. I did something similar with my first investment property also - I lived in one side and rented out the other. If you purchase with an FHA loan - then you will be required to live in the property for at least one year before moving out. In most cases, if you buy with a conventional loan then you do not need to live in the property and are free to rent it out immediately, however , if you qualified for the loan with the subject property being a primary residence on your loan application than you must occupy the property for at least one year. Your best bet is to sit down with a loan officer and discuss your plans - they will be able to tell exactly what you can and cannot do - you may also want to consider getting prequalified so you know how much you can buy and what your payments would be - this is especially useful in running your numbers to see if a property will cash flow or not. I'm happy to help connect you to a great lender that I have used for over 17 years right here Fresno if you'd like.

Girl. Buy your house and ride it out for a year. Who says eventually he couldn’t move in with you since he’s already working on the year long “primary residence” stipulation on his mortgage? As someone who plans to relocate for her long distance relationship, I’m sticking it out for a year or two in my state building up my portfolio a tad and laying the groundwork for a small passive income. If it’s the right relationship, that year compared to a life long foundation for financial freedom means nothing. I have a 3.62% FHA mortgage that I’m so thankful I was able to obtain. Take care of your finances and then plan your living situation within the relationship. You won’t ever regret it.

hey @Leah Paffrath .  Yes you can use a conventional loan for an investment property, however, if it's non-owner occupied lenders will usually ask for 20-30% down.  If you are looking to save on down payment, doing an owner-occupied property will work best for you.  I work with Paige Solberg and Lending Concepts as well as Eric Mayu at Mayu Capital.  They could really help you with the exact rules when it comes to conventional loans and investment properties.  Let me know if you'd like their numbers. 

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