I am planning to purchase a property as an investment. I do not currently own any properties. Can I purchase the home and live there for a few months and then rent it out after some cosmetic work? If so, would I need an “investor” loan right away or can I just get a regular loan? Obviousy, the interest rate on a regular loan would be much lower than an investor loan. What if I decide not to live there and rent the property right away without moving in? Any penalties from the bank or home insurance given that I should have secured an investor loan? Here is the breakdown

63K purchase price (SFH)
6,300 (10% down)
56,700 loan with 6.25 interest
12k cash back during closing

How can I best finance this so I can keep my mortgage payment down or is this a good deal??

in theory to get an owner occupied loan you are agreeing to live in the house for 12months.

however, i dont know if the banks are really going to check and see if you’re living there.

that being said, i’m not advising you to abuse the system. if you happen to default on the
loan and they find out you lied on the loan application, i’ve heard they claim loan fraud
and send you straight to jail.

What about buying a nice two unit owner occupied on half and rent out the other half. You can get an owner occupied loan for about 6% FHA and use the income from the other side to qualify.
It is a snap! You would then have a great way to get some income and still not abuse the system.
Good Luck to you. :slight_smile:

i think thats fair. and the rent from the other half probably counts towards your payment lowering your DTI.