The Federal Housing Authority does not loan money for homes, instead, they insure the lender against losses on the money they lend.
For many loan types, there are requirements that may make it a bit challenging to get a loan secured. High credit and high down payment requirements. The FHA offers a unique opportunity for those with less money and lower credit scores to enter the world of homeownership.
The FHA requires 3.5% down payment and the credit score can be as low as 580 if you have a score lower than 580 your down payment increases to 10% which is still much lower than a conventional loan.
The wonderful thing about FHA loans for those wanting to purchase investment properties is the FHA will allow you to purchase multi-unit buildings as long as you live in one of the units. If you are looking for a low-cost way to purchase investment properties, this is a great start.
The thing that can really help you generate wealth is the requirement for you to live in the property is only 12 months, then you can rinse and repeat. This is a wonderful way to amass awesome investment properties and the other really nice thing is if you are in the Orlando, Florida area, you an live in the property and your tenants never have to know you’re the owner. If you hire professional property managers like Pink Door Management, we take care of maintenance, keeping the units filled, collecting rents, evictions and you have access to your financial reports 24 hours a day.
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