I have a question regarding FHA loans. If I was to buy a duplex and wanted FHA financing to get the property for 3.5% down, Am allowed to rent out the additional bedrooms while I live in that particular unit? I would plan charge a lower rent to the tenants in my unit until I move out after the 1st year.
Thanks in advance BP members!
@Derek Feeser I don't believe that violates anything with FHA as they do allow for what is called border income - if you rent bedrooms out. But to use it for qualifying income, they require those people to be related. If you aren't using this income to qualify then I don't know how it would even come up.
Not sure if there is any provision written in the mortgage that you sign at closing that says not to do this but Ive never seen that. Maybe a real estate attorney would know.
Thanks, Jeff Dulla, If I was going to need a co-signer to qualify do they have to be related to me? Or can the co-signer be a friend/business partner?
Thanks for the quick reply!
Hey Derek! The co-signer doesn't have to be related to you, it can be anyone as long as they fulfill all of the requirements to get the loan.
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