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FHA Loans

The Pros and Cons of Government-Backed Loans for Investors

Government-backed loans can be a good option to finance an investment purchase, but they’re not right for everyone.

[Updated: Feb 04, 2021 ] Oct 21, 2019 by Aly J. Yale

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Pros Cons
Low interest rates Can require mortgage insurance
Low down payment requirements Requires you to live on the property
Less stringent credit score requirements Limits the types of properties you can buy
Can use rental income to qualify May require special qualifications
Can roll closing costs into the loan Limits on loan balances are low

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