One of the most powerful entry points into real estate for first-time investors is the FHA loan. When used correctly, it can serve as a launchpad into long-term property ownership and wealth building.
FHA loans allow qualified buyers to purchase property with as little as 3.5% down. This lowers the capital barrier to entry compared to conventional financing.
FHA financing can be used for properties with up to four units, as long as the buyer occupies one unit as their primary residence. This opens the door to house hacking.
By living in one unit and renting out the others, an investor can offset mortgage payments and reduce living expenses while building equity.
After meeting occupancy requirements, many investors refinance into conventional loans and repeat the strategy.
FHA is not just a homeowner tool. It can be a strategic investment entry vehicle when approached correctly.