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Old 06-24-2008, 09:14 AM
 
Location: Thousand Oaks, CA
75 posts, read 524,334 times
Reputation: 82

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We are thinking about getting a FHA loan, but I had some questions.

1. I know it needs to be a primary residence to qualify but can we still rent out some of the extra rooms to cover the mortgage.
2. Is everything tax deductible in a conventional loan still tax deductible in a FHA loan if we use it as a primary residence and rent out some of the rooms (I am hoping if the mortgage and rental income are about they same they will cancel each other out)?
3.

I just don't want to be paying my mortgage and then have to pay income taxes from my rental income.
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Old 06-25-2008, 09:07 AM
 
Location: Forests of Maine
31,528 posts, read 51,136,860 times
Reputation: 20521
Quote:
Originally Posted by Shikaka805 View Post
We are thinking about getting a FHA loan, but I had some questions.

1. I know it needs to be a primary residence to qualify but can we still rent out some of the extra rooms to cover the mortgage.
2. Is everything tax deductible in a conventional loan still tax deductible in a FHA loan if we use it as a primary residence and rent out some of the rooms (I am hoping if the mortgage and rental income are about they same they will cancel each other out)?
3.

I just don't want to be paying my mortgage and then have to pay income taxes from my rental income.

We used a FHA loan to purchase one of our Multi-Family-Residences.

A three apartment property, which we lived in for three years until my employment transferred us overseas. The rental income carried the mortgage, when we lived there. When we left and all three units were rented, the rental income increased.

The mortgage interest was still a tax write-off.

As was the property depreciation, and sewer, and garbage, and all expenses.

Review the IRS tax form Schedule 'E'. All expenses in a MFR are tax write-offs.

In the long run our MFRs lose money on paper. In reality they come out even each year but on paper with depreciation they lose money. Which serves to shelter all of their income from taxes, and the shelter part of my earned income from taxes.
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