In this video, I share a comprehensive guide to the step-by-step process of buying a multifamily property using an FHA loan, and investing in multifamily properties to build wealth.
Multi-family homes have caught the eye of many investors. But why? Here's the scoop: these properties allow you to occupy one unit and rent out the rest. This arrangement, often referred to as 'house hacking,' is a savvy method to generate cash flow while enjoying the comforts of your own home.
FHA loans stand as a favorable option over conventional loans for many investors. The appeal primarily lies in their lower down payment requirement and the flexibility to request higher closing costs. Specifically, an FHA loan necessitates only a 3.5% down payment, whereas a conventional loan (if you're not military-affiliated) typically requires 25%.
The Multifaceted FHA Multifamily Loan
Essentially, an FHA multifamily loan permits borrowers to wear dual hats: homeowner and investor. You can purchase up to four units without altering any guidelines, making it a brilliant strategy for those aspiring to both live in and profit from their property. One distinct advantage is the opportunity to count rental income as personal income, a useful provision when trying to qualify for larger loans.
The benefits don't end there. With an FHA loan, the more units you buy, the higher the minimum loan amount. For instance, in 2023, the maximum loan for a single unit stands at $472,300, while a four-unit property can get a loan of up to $907,900. By increasing your buying power, you can accommodate more tenants, who can then help you cover your mortgage payments.
Our team is licensed to operate in 48 states including Mexico, Virgin Islands and can guide you on everything that you need to know about the housing market and the home loan process to make your home-buying experience easy and exciting for you!
If you have any specific questions about qualifying for a mortgage please feel free to schedule a time on my personal calendar here: https://calendly.com/dxie-1/ytquestion
