An FHA loan (for investment properties) is quite different from other types of loans! It can be used to purchase a property with less money down, and carries more lenient credit requirements. However, there are some drawbacks that may make it not the best choice for everyone.
The biggest advantage of an FHA loan is that you can put just 3.5% down on a home. This makes it easier for buyers who don't have a lot of cash saved up to still buy an investment property. In addition, FHA loans also require lower credit scores than most conventional mortgage products, which can make it easier for those who don't have great credit to qualify.
However, there are several downsides to FHA loans as well. For starters, they come with higher interest rates than many other types of mortgages. Additionally, the upfront costs associated with an FHA loan can be high-there is usually an origination fee plus various other fees charged by lenders at closing time. Finally, since these loans are insured by the government they tend to take longer to process than conventional mortgages.
Overall, while an FHA loan may be a viable option for some looking to invest in real estate, there are definitely better options out there depending on your situation and budget! Before deciding which type of mortgage is right for you it's important to compare all the pros and cons carefully before making any decisions (especially when dealing with such large sums of money!).