FHA house hack questions!!

[Jacob Stone]

I'm interested in using an FHA loan on a duplex or triplex purchase for my first deal. As of right now I have a couple credit issues I'm working on taking care of, and what I'm wondering, would explaining to the bank that I plan on house hacking the duplex or triplex help my position and give me a better shot at obtaining the loan?

[Andrew Postell]

@Jacob Stone FHA loans are designed to be flexible with credit items. A "credit issue" to you might be absolutely no issue to a FHA loan. I would certainly recommend speaking with a couple of banks. Please do not use the first bank you come across. Speak to a few to get an understanding on differences between banks. It might sound wierd but some banks put these extra rules on top of FHA loans called "overlays". Those overlays might have you not qualify. For example, FHA loans can go down to a 580 credit score. But a bank might say, "well, we only will write 640 or better". And the Federal Housing Authority is totally ok with banks doing this. So look for a bank you like speaking with and look for one with no, or very few overlays. Your Loan Officer should be able to give you clear and precise advice on your credit...if it's even an issue at all. Thanks!