FHA Loan tips and tricks
Hey Everyone - I wanted to start a thread with information like tips and tricks for using FHA loans. I recently learned some valuable information about these loans and would like to know more specifically about FHA 203ks too. A common misconception is that many people think you can only use an FHA loan once for your first home purchase to put 3-5% down. You can actually use it as many times as you want as long as it fits certain criteria. You can get another one for a primary residence for reasons like relocating, growing family, divorce, if you co-signed for someone and now want your own. I believe you can even have 2 at once if its in 2 different states that qualify. The main caveat is that they are not meant to be used for investment property purchases.
Is there any way to navigate this like if it's a single family house owner occupied with 'roommates'? What if there is a ADU can that be used for rent?
Please correct me if any of this is wrong and drop your FHA knowledge below! Thanks in advance.
@Meredith Von Kleydorff I'm not an FHA expert, but keep in mind when investors/home buyers refer to FHA loans, these are mortgages insured by the Federal Housing Administration. The majority of lenders/banks are FHA approved and can therefore lend to borrowers with a lower credit score and limited savings. FHA-insured loans are essentially designed for first-time home buyers which is why investors often advocate the product for newbies to house hack. The most common rule/regulation you hear when it comes to FHA is that the borrower has to occupy the property for up to one year. In theory, FHA-insured loans can be a great route, but with current market conditions, it's difficult getting a property under contract.