FHA Home Loans – American Pacific Mortgage

You're searching for a 203k loan for an investment property. Great! But before you get too excited, there are a few crucial details you'll want to understand. Can you use an FHA 203k loan for an investment property? For a pure investment property? No. FHA loans are specifically designed for primary residences, not properties you intend to rent out entirely. For a multi-unit property you live in? Yes, with conditions. You can use an FHA 203k loan to purchase and renovate a 2-4 unit property, provided you live in one of the units as your primary residence for at least 12 months. This strategy is known as "house hacking." You occupy one unit, and the rental income from the other units can help offset your mortgage payments. The owner-occupancy rule…

Getting a lower interest rate on an FHA mortgage can save you tens of thousands of dollars over the life of your loan. Even a slight rate reduction makes a huge difference. For example, on a $200,000 home, a 1% difference in interest rate increases your monthly payment by nearly $100 and costs about $30,000 in additional interest over 30 years. Quick ways to get a lower FHA rate: Improve your credit score to 580+ for the best rates Increase your down payment beyond the 3.5% minimum Consider mortgage points to buy down your rate Choose a 15-year term for lower rates (but higher payments) Time your rate lock when Treasury yields are falling FHA loans are designed to help homebuyers with smaller down payments or lower credit scores access…

Category: FHA Home Loans

Can a 203k Rehab Loan Unlock Investment Potential for You?

The FHA Rate Hack: Strategies for a Lower Mortgage Payment