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Did You Know that First Time Home Buyers Can Buy a Duplex Using an FHA Loan?



What is a Duplex? A Duplex is a house divided into two apartments, with a separate entrance for each. This style property makes for a FANTASTIC real estate investment as you can live in one side and rent out the other.


As a First Time Home Buyer you have access to an FHA Loan to buy a Duplex, but FHA has a couple of rules you must follow so you don't committ fraud ....AND NO ONE wants that! LOL!


Here are FHA's rules around buying a duplex:

  • You MUST live in the home for at least one year. They are very strict about this and there is no getting around it. If you move out and start renting it before the year is complete, you will be committing fraud...so that's a no no!

  • In order to move out, rent out and do it all over again, FHA requires you to have 2 years of Landlord experience. UH OH! So instead of moving out in one year, just live there for 2. You can gain your 2 years of required Landlord experience by renting out the other side of the duplex while living in the 2nd side. YAY!


Benefits to buying a duplex as your first real estate purchase:

  • Purchase a Rental Property with an FHA Loan

  • FHA Loans Allow for a Lower Downpayment, Making the Purchase More Affordable

  • Aquire a Property using "Other People's Money", Qualifying with the Rental Income

  • Gain 2 Years Landlord Experience while Occupying the Home

  • Receive Tax-Advantages Since You Will Use All Expenses, Administration Costs, Depreciation and Cost Segregations Against the Income.

  • Save Up 6 Months of Mortgage Payments from Rental Income and Place in Cash Reserves to Buy Your Next Property


Most people feel that the HARDEST thing about investing in real estate is getting started. Do you feel that way too?


Would you like more information around real estate investing?




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