Can I use an FHA loan for an investment property?
Not for a pure rental — FHA is owner-occupied only. But you can buy a two-to-four-unit property with FHA, live in one unit, and rent the others, which is a powerful investment strategy.
The rental units' income can even help you qualify. For a standalone investment, we'll use a conventional or DSCR loan instead. We'll structure the multi-unit purchase to your advantage.
Not for a pure rental
FHA loans are for primary residences, so you cannot use one to buy a straight investment property you will not live in. The home has to be your main residence.
This owner-occupancy rule is central to the FHA program and keeps it aimed at homeowners.
The house-hacking loophole
There is a smart workaround. You can buy a two-to-four unit property with FHA, live in one unit, and rent the others. That makes it partly an investment while staying FHA-eligible.
It is one of the cheapest ways to start as a landlord. Reach out and we will run an FHA multi-family purchase for you.
Verify the details for your own situation against these government and agency sources: HUD FHA loan program and HUD Handbook 4000.1 (FHA rules).