Buyers can opt not to get a home appraisal but it is generally useful for all parties in a home buying process. What is a home appraisal? A home appraisal is the determination of a'
Can You Invest Using An FHA Loan
Can You Invest Using An FHA Loan?
Lots of people make money by investing in Real Estate. It requires a great deal of capital and knowledge to do so though. You really have to study and learn to avoid investment mishaps.
So, can you get around the big capital requirement to invest using an FHA loan?
What is an FHA Loan?
It is a home loan guaranteed by the Federal Government - the Federal Housing Administration. It is designed for low-to-moderate income borrowers as it require a lower minimum down payment and credit scores than most conventional loans.
How does it work?
So, traditional lenders make these loans to those who qualify then the government serves as the insurer for the loan. Borrowers qualify for a little as 3.5% down for a credit score of 580 or higher.
Buying A Rental with an FHA loan
So, if you don't have much cash as a capital for a rental investment, can getting an FHA loan an option?
The answer is yes, but keep in mind that when you buy a property through this, you must live in it for at least a year before you can rent it out.
The fix is when you get a multi-family home. FHA can let you get a loan far a property with up to four units so if this is the case, you can live in one unit for a year and rent out the others.
Keep in mind
Before you decide to get an FHA loan, it is important to know that one of the cons with this loan is you have to pay mortgage insurance depending on the down payment you've put in. Be sure to have a plan and weigh all pros and cons and all the options you have before getting into anything.
Keep in mind that it's really nice to get your own or another property but be sure that you're really ready.
If you are ready to buy, talk to a real estate professional to help you with your real estate journey.
Professional help WILL make a difference. Call or text 907 570-6757 or 907-720-4663 so we can help.
Vanna has called Alaska home for the past 15 years. As a mother, real estate investor and previous business owner, Vanna brings many different perspectives when working for her clients. She has been a....
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