Can FHA Loans Be Used For Investment Properties?

Jan 16, 2024

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Using a Federal Housing Administration (FHA) loan for an investment property may seem tempting, but unfortunately, it’s an approach to real estate funding that’s not straightforward. These types of mortgages can’t be used to fund investment properties directly because FHA loans must be used to buy a primary residence, outside a small handful of exceptions.

Let’s take a closer look at how the FHA’s occupancy requirements work, and how you can use FHA loans for your next real estate purchase.

What Is An FHA Loan?

FHA loans are government-backed loans issued by the Federal Housing Administration. These types of loans are non-conforming mortgages aimed at helping low- and moderate-income buyers achieve the dream of homeownership with less up-front savings and costs.

For eligible borrowers, FHA loans come with lower down payment requirements and lower minimum credit scores. They’re often a popular choice with first-time home buyers for these reasons.

See What You Qualify For