My latest article for BiggerPockets goes into a very important subject for any newbie investor because it discusses the ins and outs as well as the positives and negatives of the best way for newbie investors to get started in real estate; namely FHA loans.
FHA loans are a mortgage issued by a lender that’s approved by the Federal Housing Administration (FHA), which is a U.S. government agency. These mortgages are insured by the FHA, and as mentioned above, require only 3.5 percent down. They are usually amortized over 30 years, and the interest rate is also quite low.
And these loans can (sort of) be used for investing,
What’s even better, you can finance up to a fourplex. So, why not buy a fourplex, live in one unit, and rent out the other three?
Of course, there are some qualifications you will need to meet and some downsides (for one, you have to live there for at least a year). But if you want to get into real estate investing and aren't sure where to start, this is definitely an article you should read!
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