FHA LOANS for first House Hack

[Anthony Matus]

Hey hey, Anthony from San Diego here. Moving to SE CT next summer and I want to purchase my first investment property. Looking to discuss FHA options. If I can, I would like to purchase a triplex or quadplex I can house hack. I am interested in something that requires work so I can also finance the renovations with FHA. Thanks!

-Anthony

[Torrell Palmason]

Hey Anthony,

So FHA is a great option to get started in investing. There is FHA 203k that is a renovation loan that you can do the purchase and get the renovation paid for however you are not allowed to do you own work. These loans also tend be quite the process so you'd want a lender who is very familiar with these loan types. In this market I have seen these not work out simply because the process is so lengthy.

Another option if you want to purchase with Hard Money. These are fast money loans so you can get the deal closed quick but you cannot live in the home while with Hard Money. So you would have to purchase, rehab, then refinance, so you could begin house hacking.

Other than that you could just do a FHA Loan on a 2-4 unit that doesn't need work to pass an appraisal, the down payment will still be 3.5%. If you want to move in immediately this is the option I recommend, you end up purchasing a bit higher than a home you have to rehab but you can begin leasing out the other units as soon as the deal is closed.

Best of Luck!