Take advantage of FHA or not

[Christian Estrella]

Good Afternoon All,

Before COVID, I was looking in the NJ (Elizabeth and Newark) market for a multi-family property. I wanted to take advantage of my FHA and house-hack as an owner occupant. My credit is at 650, due to an old collection and late student loans (-__-), FHA was perfect for me because of my low credit score. I have been working with a credit repair company to boost this but it is slowly working.

I have been reading that the lending guidelines have gotten stricter with the this pandemic, they are looking at higher scores, reserves, etc.

My question is:

1. Should I wait to build my credit score and make use of my FHA loan, even though it might take a while. (This strategy requires a househack)

2. Buy an investment property with conventional financing or an off-market deal with cash/credit, to use the BRRR method, and forfeit the chance to use FHA. (This strategy i would not house-hack, as I am living in queens NY)

I been waiting on the sidelines and would like to make a move sooner than later.

Any insight is appreciated. Thank you.