Steps to take to get an FHA Loan

[Parker Foard]

Hi Bigger Pockets Crew!

I am new to the investing world and just out of college. I have a full time job and am looking at investing in property really soon. I plan on "House hacking" my first deal and then going from there. I was wondering the steps I need to take to get an FHA loan (where to go, who to talk to, what to ask, at what point in the process, etc.). If anyone has experience with this I'd love to hear about it! Thanks!

[Eric Swint]

Hi @Parker Foard! I'm currently house hacking a duplex in Toledo, Ohio. As Brandon said, you can get an FHA loan through just about any lender. Pick your location, find those properties within your budget (make sure the numbers work as a potential investment opportunity), and shop around for a lender with the best value during your search (ask local investors you know who they use). You'll need a pre-approval letter from the lender you choose before you can put in an offer. Typical FHA loans are 3.5% down, but you can increase that number if you want. The inspection process for an FHA loan is more strict, but the loan process in general is pretty similar to a conventional. There may be a few extra forms to fill out and documents to provide. Closing on an FHA loan can sometimes, not always, take longer than a conventional loan. Keep in mind that you need to live in the property so make sure that is feasible with regard to current leases. I personally have had a good experience with the FHA process. It was important to me to be able to put less money down on the duplex so that I could use my cash for the renovations. Good Luck to you! Hope everything goes smoothly!