FHA pros/cons

[Andrew Emery]

I was wondering what everyone's thoughts were in regards to FHA mortgages. I hope to finance my first home with an FHA mortgage, but would like to acquire investment properties relatively shortly after moving into the first home. Aside from the more lenient standards and lower interest rate, what could be some additional benefits of an FHA mortgage? Also, what could be some negative consequences of this type of mortgage in terms of their effect on my ability to acquire additional properties in the near future? BTW I am a soon to be college graduate (2013) who will also have student loan debt. I hope to first acquire a duplex that I will occupy, with the first investment property being either a SFH or small condominium.

Thoughts or criticism of my plan are encouraged

[Phillip Dwyer]

Hi Andrew,
There have been several recent threads on this topic, so be sure to search and read through those postings. Keep in mind, FHA loans are for owner-occupants. Also, you can only have one FHA loan at a time. Having an FHA loan won't disqualify you from obtaining a conventional loan for a new purchase.