FUNDING
Mortgage Assistance Programs: A Lifeline for A ordable Homebuying USE THESE RESOURCES TO MAKE PROPERTY INVESTMENTS MORE ACCESSIBLE AND PROFITABLE.
LUKE BABICH
A lthough many experts spent the last few years predicting an economic downturn, the past two years have been good for residential real estate investors. A recent survey of real estate investors found that three-quarters of them were making at least as much in 2024 as they made in 2023 from their investments, and more than 40% were making more than they did a year ago. In addition, overall performance is beating expectations. Nearly half of investors said they were making more from their real estate investments than they expected. Several factors are driving this real estate investment boom. Despite a general atmosphere of economic uncertainty, Americans are still moving around the country — most in pursuit
Federal Housing Administration (FHA) and Veterans Affairs (VA) loans come with relaxed qualification standards, affordable mortgage rates, and very low down-payment requirements. Applicants for an FHA mortgage can qualify with a credit score as low as 500 and put down as little as 3.5% upfront, which is much lower than the conventional 15% or 20% required by conventional investment property loans. FHA applicants can also be approved even if they have a checkered financial history that includes a bankruptcy filing or a past foreclosure. Requirements for a VA loan are even more relaxed. Applicants can put no money down and may be exempt from credit score requirements. Of course, these loans come with conditions. For VA mortgages,
of a higher quality of life. That has kept demand for housing high and enabled savvy investors to put their money into profitable properties. An underappreciated factor in the ongoing investment boom is the presence of mortgage assistance programs that enable investors to buy properties without putting down a lot of money upfront. Similar to homebuyer rebate programs that ease financial pressure for buyers, these programs enable investors to buy properties that might otherwise be out of their reach. HOUSE HACKING WITH FHA OR VA LOANS One of the most efficient and creative financing strategies for real estate investors is to combine “house hacking” with popular government mortgage programs.
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