Financing
Good afternoon investors,
I am a newbee investor who is in progress of buying my first property. I feel I have done enough research on REI but seem to be getting cold feet. I have two questions. I wouuld appreciate any feedback on this matter since I believe everyone was in my shoes in the past.
1) Is it ok to purchase my first property utilizing my pre-approved FHA loan from wells fargo home mortgage. Is this even a good choice? I have no money to invest but good credit to purchase a home and fix it utilizing low intrest credit card.
2)I am also intrested in doing an inverse purchase on a property. There is a great book on this but has anyone ever done an inverse purchase. Is it difficult to execute one.
Once again, all info is appreciated. I have seen some great advise in this forum. There are some knowledgable investors here. Thank you 
:-?
I hope others who may be more knowledgable offer their opinion.
Here is what I know about FHA loans. As long as this is your primary residence, you can use an FHA loan. And, if you use an FHA loan, you may have to keep the property for a certain period of time (3-6 months, I believe, but it may be as much as 12 months). To the best of my knowledge, you can not use an FHA loan for a non-owner occupied property purchase.
If the home qualifies for FHA (it may not if it needs work), and you plan on living in ti, then it should be a good way for you to get a good interest rate on the property and only come up with a little down (I believe FHA requires a minimum of 3%). However, if you aren't going to live in the property, or if you plan on selling quickly afte you rehab, there are (or may be) better ways to go.
I have no idea about the inverse purchase. Never heard that term.
John Walko
If you qualify for FHA, then you qualify for conventional. I would suggest you go conventional because there are lenders who will do 100% investor financing. Or they don't mind if you get a loan for the 10% down.
I appreciate your responce on this matter. Thank you very much