Finding Deals, Getting them Under contract and using FHA secured loan?

5 Replies

First time poster here on BP. I've gleaned an incredible amount of info but I don't think I've ever seen this answered.

If I found a deal, in much the same way any other investor would, lets say I could pick up a SF home for 55k, and it's worth 100k, and it needed say 15k worth of repair, so I hit the target for a house that's going to be worth investing in,

Would I be able to purchase that home with an FHA secured loan? Assuming I have a pre approval. Just curious, financing seems to be my biggest hurdle for getting started in real estate.

Any feedback appreciated thank you!

What are you trying to do?

Originally posted by @Mike Osterman :

What are you trying to do?

Buy a home for a good deal using an FHA loan, then depending on the property, hold it and rent it at a later date or sell it after any repairs or updating it may need are complete and the 1 year obligation to stay in the home is over.

Just curious if there were restrictions I was unaware of since FHA loans have guidelines that need to be followed

Probably. Just tell your seller your going to get a loan and you'll be good. 

If it needs repairs, you'll have to use a FHA 203k purchase/renovation loan. Straight FHA loans are pretty picky about condition of the house. You search here, FHA.gov, or Google for 203k info.

15k Reno wouldn't fly with fha loan at all. Fha 203 is correct and also talk to your lenders or broker ahead of time and get their professional opinion.

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