What is an FHA loan and how can it be an advantage?

[Nicholas Salman]

An FHA loan is a government loan through Fannie Mae that is mostly geared towards first time home buyers.

Some lenders vary on minimum credit score, avg being a minimum of 620 credit score

3.5% down

DTI ultimately up to the underwriter, but should be ideally no more than 50%

Must be owner occupied!

Hope this helps!

[Steven Foster Wilson]

Quote from @Nicholas Salman:

An FHA loan is a government loan through Fannie Mae that is mostly geared towards first time home buyers.

Some lenders vary on minimum credit score, avg being a minimum of 620 credit score

3.5% down

DTI ultimately up to the underwriter, but should be ideally no more than 50%

Must be owner occupied!

Hope this helps!

Thanks for sharing Nicholas. Have you been able to use a FHA loan yet?

[Collin Wallace]

Thanks Nicholas this was helpful ! I'm currently house hacking with my VA loan in my first property. With the FHA are there regulations? Is it just for your 'intended primary residence' or is it just for your 'first home'?

[Brittany Minocchi]

Quote from @Collin Wallace:

Thanks Nicholas this was helpful ! I'm currently house hacking with my VA loan in my first property. With the FHA are there regulations? Is it just for your 'intended primary residence' or is it just for your 'first home'?

Hi Collin, the FHA loan is for owner-occupied residences, however you do NOT have to be a first time home buyer. House hacking works with FHA too -- you could purchase a duplex and live in one unit while renting the other, for example.

[Cherice Williams]

Hi Collin! 

How long do you have to live at the property to receive an FHA loan?

[Sara Frank]

One step further -- the FHA 203k is a rehab loan version and can be very powerful if used correctly! Thats what I used for my first deal to add equity and house hack.