This section is for non homeowners. Click the button above if you are a veteran, or a spouse of a veteran.

Qualified first time home buyers, or people who haven't owned a home in seven years, can buy 1-3 professionally managed rental units along with a new home with as little as 3.5% down. And up to 75% of the rental revenue can count as qualifying income for the loan.

So what's the catch? The rental units must be attached to your new home. The most common home with an attached rental, the duplex, isn't popular:

pGroup Privacy Housing

Above: Homeowners don't want to see or deal with renters.

Below: My patented homes with hidden attached rentals eliminate those issues. You never see or interact with your renters. The rentals are managed by a professional management company.Your renters have a separate entrance to the community at the rear of the property. The rendering below shows a one story owners ranch home with two rental units above each owners home. There is an option for a full finished basement for you. The renters outdoor area is shaded red. A wall separates the owners and renters outdoor areas. You'll never see or interact with your renters:

The management company handles all rental concerns. They collect the rent, pay the expenses and distribute the rental income equally to the owners of the community regardless of each units vacancy. The risk of vacancy is spread between all the owners insuring minimal cash flow interruption for each individual owner.

Below is a top down view showing that the renters have a separate car entrance at the back of the community. The renter car entrance and outdoor area is shaded red. It is separated from the owners outdoor area (green) by a barrier. Owners and renters never encounter each other. Each owner has a private side yard and patio which functions as your back yard:

Below shows that the front of your home looks like a single family two story home:

Below is a view of the rental units at the back of the property. The rentals are on the second floor and have a balcony as well as a fenced in area at ground level. They also have a one car attached garage. They are high quality rental units to attract premium renters.

These homes can be purchased with the 3.5% down payment first time buyer (or a buyer who has not owned a home for at least seven years) and the zero down payment VA loan. They can also be financed with a conventional 20% down mortgage, among other mortgages. Here we discuss the FHA 3.5% down mortgage.

The 3.5% down payment can be gifted from a family member, friend, employer or some other lender approved source.

A unique advantage of these income generating homes is that a portion of the rental proceeds may count as qualifying income for your loan.

This is a government backed FHA loan.

Here are some basic FHA guidelines for borrowers:
-FICO® score at least 580 = 3.5% down payment.
-MIP (Mortgage Insurance Premium ) is required.
-Debt-to-Income Ratio < 43%.
-The home must be the borrower's primary residence.
-Borrower must have steady income and proof of employment.

-If your FICO® score is between 500 and 579 a 10% down payment is required.

You, or you and your spouse, partner, relative or close friend will need to earn at least a certain minimum income to qualify for the loan. Both of you will need to be on the mortgage.

This information is to the best of my knowledge. I am not a mortgage lender or financial advisor.