Help with FHA loan in my area

[Dillon Harris]

I’m wanting to get into real estate investing for the first time but I fear my local location has put me in a predicament. There’s a triplex that I found in which I was wanting to do the house hacking method and my plan was to get an FHA loan for the low down payment. The problem is the local bank here is telling me in order to get an FHA loan they have to find 3 similar homes to this triplex that have sold in the last 6 months to be able to get an appraisal and that’s not gunna happen here where I live cause it’s very unlikely there’s been even one sold in the last 6 months. Leaving my only option a commercial and I couldn‘t 20% down. Any advice would be appriated.

[Kevin Romines]

The appraiser will expand their search criteria. They will expand the distance, they will expand the sales date time and they will expand the comp selection such as a duplex compared with adjustments or a 4 plex. I closed 2 rural duplex's a few months back where the comp's came from a neighboring town 15 miles away just because there weren't any relevant comps in that town. Don't let the bank lead you into thinking it can't be done. If that's the case, choose another lender.