How to avoid a 20-25% down payment on a home 🏡
Instead of using conventional loans, FHA loans just need a 3.5% down payment.
An FHA loan is a government-backed mortgage option that gives many people the chance to own a home, despite having a bad credit history or encountering challenging financial circumstances.
The requirements =
Live in the house
Have a FICO score of at least 580 for the 3.5% down payment.
Less than 43% DTI
Since you do need to live in the property, what you can do is house hack so that you live in one unit while renting out the others
That way you can make up for your living expenses and possibly cash flow!
Imagine paying $2,000 a month for mortgage, PMI, property taxes, insurance, etc for a 4-plex.
You then collect $900 a month in rents from each of your tenants who live in the other 3 units.
That would equal to $2,700 in rents that would make up for your living expenses and help you cash flow each month!
House hacking is a great way to start getting into real estate investing.
If you’re interested in learning how to buy rental properties:
🌸 Attend the FREE how to buy your 1st rental property masterclass through the link in my bio!
Hope that helps!
Follow @sharontseung to help you become financially free
👉 If you want to start investing in real estate - we gotchu:
You can start with our FREE class about How To Buy Your First Rental Property.
We will go over:
✅ The Fundamentals of Real Estate Investing
✅ How much do you need to start investing?
✅ The Steps to Buying Your First Property
Where: Link in bio! 🔗
Why: To create financial freedom for yourself!
#mortgage #fhaloan #rentalproperty #realestate #realestateinvestment #realestateinvesting