I own a home, but I want to buy units to invest for retirement income.   Can I put 3.5% down?

Great question Derek!

That’s a great idea to create cash flow for your retirement!

Unfortunately, when you already own a home your live in, you are not eligible for the FHA 3.5% down for units.   And since FHA does not finance purely rental properties, you would have to get financed with a Fannie Mae or Freddie Mac backed loan. The minimum down payment for this would then be 25% down.

If your house were a rental property (and showed that way on tax returns) you would then be eligible for an FHA loan with 3.5% down on units.   You would have to be moving into one of the units.