Renting Out An FHA Home
I need a little help. I would like to know if anyone can tell me the rules regarding renting out an FHA loan. Because of my credit score, I do not qualify for many loans. however, I was approved for the FHA 203k rehabilitation loan. My plan was to buy this property(zero lot line $40,000 2/1.5, AS-IS appraisal: $70-75,000, cosmetic repairs.) and rent it out so that I can get started in my real estate career. Can anyone tell me if this is a decent idea or just plain foolish. Also, if this is not a good idea, can I refinance to another loan from a FHA loan?
See below, but I do not see why you could not live there for the owner occupied requirement then rent it.
21. Can an investor use the 203(k) program? No. In October, 1996, the Department placed a moratorium on investor participation in the 203(k) Rehabilitation Mortgage Program.
http://www.hud.gov/offices/hsg/sfh/203k/faqs203k.cfm
[ Edited by d_random on Date 03/11/2008 ]
Thanks yall I will keep those thoughts in mind.