FHA loan? Is this a good idea in this situation?

[Drew Herzog]

I'm 18 and don't have access to a ton of money (30k). Would this be a good way to get into rental property investing? What are the drawbacks compared to a conventional loan? Is this something to consider?

[Jay Hurst]

Quote from @Drew Herzog:

I'm 18 and don't have access to a ton of money (30k). Would this be a good way to get into rental property investing? What are the drawbacks compared to a conventional loan? Is this something to consider?

FHA requires you to live in the property. But, you can use it to buy a 2-4 unit (2 unit are much easier then 3 or 4)or house hack a single family meaning live in the house and rent rooms to friend having them pay you mortgage for you. But, you much live in the house yourself for at least a 1 year to use FHA.

[Caleb Brown]

Any owner occupied loan would work FHA or low money down conventional. You can house hack a single family or a 2-4 unit property.

[Simon Ashbaugh]

Hey Drew, leveraging an FHA loan is a smart move for young investors like you looking to house hack. Just remember though as Jay already mentioned, there's a requirement to live in the property for at least 1 year so ensure that this aligns with your plans.

[Jonathan Greene]

It's not just access to the downpayment, it's about whether you can qualify at 18 for any loan, much less an FHA loan. Your theory on using an FHA is basically just, low money down, but why do you want to invest in real estate? FHA has more requirements, but you aren't putting 20 percent down on a conventional anyway so you will have PMI either way.