How to Use a FHA Loan on an Investment Property

This week’s question comes from Mack through Ashley's Slack channel in the Real Estate Rookie Bootcamp. Mack is asking: How can I buy an investment property without putting 20% down?

Mack has the question that many real estate investors do: how to buy with low or no money down? Thankfully, the world of real estate has a plethora of financing options from low down payment conventional and FHA loans to zero percent down loans from certain providers. Granted, you do need to check a few boxes before you can get these.

Here are some suggestions:

Understand the main differences between FHA loans and conventional loans

Use house hacking as a way to qualify for owner-occupied financing

Calculate out your PMI beforehand so you know the true cost of a sub-20% percent down loan

Use a HELOC on your current properties as the down payment for new ones

And more in the episode…

If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).

Links from the Show

Real Estate Rookie Rookie Facebook Group

Real Estate Rookie Youtube Channel

Real Estate Rookie Bootcamp

BiggerPockets Forums

NACA

Check the full show notes here: https://www.biggerpockets.com/rookie142

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