FHA Loans/USDA Loans

5 Replies

When I buy my first investment property I plan to use one of these loans for financing. I know that both options have their own specifics involved but as an overall experience I would like to know how the process work for you when you financed deals with these loans. Could you adjust your down payment? Could you adjust your interest rates? How long did it take? Any hiccups? 

Thank You!

Isaac Z Schulman


Neither FHA nor USDA will allow for Investment property financing. Those programs are for primary residence financing only. They only way you could use either of those is to buy it and live in it.

If I bought a small multifamily home with an FHA loan and rented out a few units to create positive cash-flow is that not considered an investment property? That is my plan.

     With the USDA Loan I was thinking it would be more of a deal focused on possible appreciation of the area to than sell for a profit. 

I am leaning towards small Multi-Family financed by an FHA and I would live there. and manage the property.

     Do you have any experience using these loans?

If you live in one of the units, the banks will not consider it an "investment property" as long as it's less than 5 units. 

I would caution you about betting on appreciation.  Though it is nice and can be somewhat predictive, it is still a form of speculation.  Always be sure that the numbers work WITHOUT considering appreciation first.

Did you ever get the USDA loan, Isaac?

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