One requirement of an FHA loan is that it must be owner-occupied. This means in most cases investment properties are ineligible for FHA financing. There is a way to take advantage of an FHA loan in an income producing property however - by buying a multi unit home.
FHA loans are available for properties with one to four units. You can live in one of the units and rent out the others to help offset the mortgage costs. With an FHA thirty year fixed rate home loan your monthly mortgage payment will remain the same throughout the loan term (though escrow payments for taxes and insurance can increase over time) rental prices in your area will likely rise over the years.
The maximum eligible loan amount is higher for properties with additional units. This widget from American Financial Resources, an FHA lender, shows how the loan limits vary by number of units in three North Carolina counties. Find the FHA loan limit for a multi-unit property in your county here: http://www.afrmortgage.com/2d-afr-widgets.php
FHA Mortgages @ AFR
