What kind of financing can you use to buy an investment property, a multi-family property. You know, that’s an exciting thing about FHA and VA. They allow you to buy a duplex, 2-4 unit apartment complex, as long as you’re going to be an owner-occupant. So super great news.
Let’s talk FHA. FHA has a 3.5% down payment. 3.5% down payment plus closing costs, you’re in! You could buy a $400,000 4 plex for $14,000 plus closing costs. Compare that against 25% for the non-owner-occupant, the investor loan. That’s going to be $100,000 down plus closing costs.
So it’s a fantastic program, it’s tricky though, you do have to have the right rent ratio and it’s possible that you may lean towards getting a duplex because of the way the rules are set up. But a duplex is a super great way to start your investment program. Live in one, rent the other. FHA loan. We can talk to you about the strategies of how to get ahold of one.
