Can you start flipping house with a mortgage loan?

5 Replies

You can get a loan for the purchase as long as you can come up with the down payment.  If you live in the house yourself while you are working on it, you can qualify for owner occupant terms, which are more favorable.  

Just know that a FHA loan is low value to most sellers, it's a LOT of paperwork. The positive for you the buyer is the low down payment. With that said, if you go regular FHA the house needs to be near perfect. The 203k like mentioned works, but you need to find a contractor willing to work with you. The scope of work for the job needs to be very detailed, you also don't get the full amount as they hold some back as contingency.
With any FHA loan, you will need to live in the house at least one year as your primary residence.

If you have no history it's going to be harder to get a loan and require you to put more down depending on the condition of the house. Bigger the project, bigger the risk, bigger the requirements... 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you