I'm planning to buy my first multi family home, and I was wondering if it would be a good idea to use an FHA loan to purchase and rehab a property do to the low interest rates.
It is the best way to follow through with the BRRRR method with the least amount of capital. You can put 3.5% down. If you go with a 203k loan, you can finance the repairs as well.
If you are able to build enough equity, you can walk away with proceeds from the cash-out.
@Gaetano Ciambriello thank you for your input I really appreciate it. I have a couple more questions, I would love to continuing discussing this with you, are you available for PM?.
It's the best way if you can get a contract locked down! Conventional loans tend to be preferred by sellers
Sure it's possible, you just have to live in one of the units for at least a year.
Yes, using the FHA 203k Rehabilitation Loan is a great option due to the flexibility of qualified property types and low down payment requirement.
You can even use 75% of the market rent for the units you won't occupy as income if you need it.
Don't forget about the FHA Stress Test for 3-4 unit properties.
@Paul Welden thank you I highly appreciate your input, I will take it into consideration especially since you reinforced the decision I was questioning to make.