FHA Buyers

FHA home loans allows first time home buyers to purchase a home with less than 3.5% down. You can learn more about how to apply on their website.

What does this mean for real estate investors who buy houses, fix them up, and sell them? It is important that you buy houses that are not too expensive. You want to find houses where the the after repair value is around 80 to 250 thousand dollars. You want to think to yourself, could the average first time home buyer afford this house at the price I am willing to sell it for? If the answer is yes, then this is a great property to invest in. When you are aiming at first time home buyers you must wait three months after you close on the property to put it on the market. This may change some of your strategies. Just remember many of the people buying houses now are first time home buyers.