James goes over the pros and significant cons of FHA loans and helps you determine if FHA loans are for suckers.
You can purchase a property in Providence, Rhode Island using an FHA loan with just 3.5% down. Heck, sometimes you can even get down payment assistance to help with the 3.5% down payment.
But there are other loans with lower down payment options.
However, when you put less than 20% down, FHA loans require you buy insurance to protect the lender in case you default on the loan.
This insurance… called Mortgage Insurance Premiums (MIP) for FHA loans or the equivalent of Private Mortgage Insurance (PMI) on other types of loans… has both an upfront premium and a monthly premium.
And, with FHA loans this monthly premium NEVER goes away… even when you pay down the loan to well below 80% loan-to-value.
With this Mortgage Insurance Premium (MIP) that never goes away… does that mean that FHA loans are for suckers?!
Well… not so fast… in this class we will talk about the pros and cons of FHA loans and see if they’re really just a sucker’s loan or if Providence real estate investors could utilize FHA loans in a beneficial way.
See the charts and watch the video version of this class:
https://realestatefinancialplanner.com/are-fha-loans-for-suckers/
Learn all about investing in real estate in Providence, Rhode Island with a combination of real estate financial planning and modeling with numbers specific to Providence plus syndicated, more generalized recordings of live and pre-recorded real estate investing classes (not all specific to Providence).