Owner Occupied / FHA Question

[Jerry Dennehey]

Hello All,

First post!I recently started a new job, would like to purchase a rental property in the area and finance with an FHA loan and owner occupied.Married / kids, so I would keep the primary residence.Several reasons for this location:

• -Owner occupied allows FHA loan
• -This would greatly reduce drive time to / from work
• -This property would be approximately 60 miles from primary residence

Goal is to find a multi-unit property, ideally 4 units which would allow one for me and rent out the remaining 3 units.This would in the greater Hazleton, PA area.Rent would be $600-$700 per unit, allowing the rents to support expenses and generate some positive cash flow.There are several properties that fit these criteria for sale at approximately $100-120k.

I have talked to one mortgage broker, through my local credit union, so far.Issue I ran into was debt to income ratio.Primary residence is financed, in addition to student loans and auto – with the new property debt ratio would be close to 75%.Adding in spouses salary would mitigate, but I believe this would remove the option for the FHA loan. FICO was about 690.

Ideas / options would be appreciated.

Thanks.