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should I use an FHA loan for an investment property or is another loan better?

by emiliafrankhrt39130 from Moore, Idaho. May 26th 2015 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

FHA is for owner occupied properties only.. you can purchase 1 to 4 units using FHA, but you must live in one of the units, and you have to stay put for at least 1 year. Also understand that in most cases, you can only have 1 FHA loan at a time.. The benefit to FHA for an "Owner occupied investment" property is that you can buy with only 3.5% down.. the down side is you will pay mortgage insurance and in most cases, it's there for the life of the loan.. the only way to get it removed is to refinance.. Another important thing to consider is that if you currently have a home that you own and live in and you state you are going to use FHA for an investment purchase, be prepared to offer a "letter of explanation" since most underwriters will find it hard to believe that someone is moving out of a home to move into an apartment.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714

May 26th 2015
Jericho Cherry (Jerichocherry)
#56 ranked lender in Virginia - 1,107 contributions

Sorry, but FHA does only Primary Residential Loans, not investment property.

May 26th 2015
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