Real Estate Agent · Washington, D.C. · Member since 2022 · 37 posts · 15 votes
Hey BP Family!
This is my first post on the forum so I'm interested to see how this goes. I am currently in college as an engineering major and I'm getting ready to move back to D.C. after I graduate (I am from there originally). I know that I want to invest in the area but would like to ask you all in the DMV if there are any tips and tricks you would recommend as I start my journey. Specifically, I want to learn more about the limitation of house hacking and the availability of government backed mortgages such as standard FHA and FHA 203K loans in today's market. I'd appreciate the advise!
This is my first post on the forum so I'm interested to see how this goes. I am currently in college as an engineering major and I'm getting ready to move back to D.C. after I graduate (I am from there originally). I know that I want to invest in the area but would like to ask you all in the DMV if there are any tips and tricks you would recommend as I start my journey. Specifically, I want to learn more about the limitation of house hacking and the availability of government backed mortgages such as standard FHA and FHA 203K loans in today's market. I'd appreciate the advise!
Best,
Callaway
Most college grads are house hacking if you qualify you can get an fha loan with 3.5 down and get most if not all of your closing costs covered. As far as 203k rehabs it’s super hard to find deals with enough equity to make that happen right now however there are still some pockets of D.C. and western pg county and some parts of Baltimore where you can get some equity. Feel free to reach out with any questions.
This is my first post on the forum so I'm interested to see how this goes. I am currently in college as an engineering major and I'm getting ready to move back to D.C. after I graduate (I am from there originally). I know that I want to invest in the area but would like to ask you all in the DMV if there are any tips and tricks you would recommend as I start my journey. Specifically, I want to learn more about the limitation of house hacking and the availability of government backed mortgages such as standard FHA and FHA 203K loans in today's market. I'd appreciate the advise!
Best,
Callaway
Most college grads are house hacking if you qualify you can get an fha loan with 3.5 down and get most if not all of your closing costs covered. As far as 203k rehabs it’s super hard to find deals with enough equity to make that happen right now however there are still some pockets of D.C. and western pg county and some parts of Baltimore where you can get some equity. Feel free to reach out with any questions.
Real Estate Agent · Seattle, WA · Member since 2019 · 301 posts · 188 votes
4y
Hey Callaway, sounds like you have a great plan! I'm not aware of too many limitations regarding those loan programs. Rates are probably a little higher these days. Some of the downsides with FHA are expensive mortgage insurance and more stringent requirements than conventional financing. The FHA 203k loan takes more time and paperwork to close as well but can be a great tool to use for renovations.
Real Estate Agent · Washington, D.C. · Member since 2022 · 37 posts · 15 votes
4y
Thanks for the advice guys! I'm glad standard FHA is a viable loan option. I had a lender in the area telling me nothing but negative things about the prospect of getting an FHA loan and the information didn't sit right. Hopefully there won't be too many bumps when looking for financing.
Investor · Fairfax, VA · Member since 2022 · 24 posts · 9 votes
4y
I'd say house hacking sounds like a good plan. I'm wondering why you're looking into FHA - if you have good credit, you could do conventional instead, no? I bought my first condo out here at 24 and went in thinking I'd do FHA because I feel like everybody and their mother assumes FHA is the best option for first-time home buyers, but double check to make sure that's the case for you. The only thing I'd re-do if I had the chance would be buying a place I could create sweat equity with - mine was already move-in ready with no real updates I could make to force appreciation. Look for the worst-looking units in the best neighborhoods you can afford.
Real Estate Agent · Washington, D.C. · Member since 2022 · 37 posts · 15 votes
4y
Honestly Laleh, that is my current assumption. But based on what you're saying I'll definitely take the time to explore conventional as an option. Putting in sweat equity was something I was hoping to do, but I didn't have a good idea where to look. I appreciate the advice!
Realtor · Spokane, WA · Member since 2020 · 138 posts · 87 votes
4y
Welcome to BP , Callaway! As everyone suggest here, house hacking might be the best option for you. I am not sure why the lender is talking nasty about the FHA. If FHA is able to get you started with real estate investing, I would go for it. I would recommend connecting with an investor friendly realtor that knows the area as well. Make sure that the numbers makes sense to you and your situation.
Goodluck out there and congratulations on finishing college! Please feel free to connect with me if you have any questions
Thanks for the advice guys! I'm glad standard FHA is a viable loan option. I had a lender in the area telling me nothing but negative things about the prospect of getting an FHA loan and the information didn't sit right. Hopefully there won't be too many bumps when looking for financing.
Sounds like you should be looking for different lenders. There is nothing inherently wrong with FHA, but it is a good to get a complete overview of all your options.
Rental Property Investor · VA · Member since 2020 · 218 posts · 133 votes
4y
I totally recommend anyone who could qualify for FHA to go for it. At 3.5% down payment, its a no-brainer investment strategy. I hope you made your move since you originally posted @Callaway Pate!! If not, attend Nova Investors meetup, there are quite a few house-hackers you may want to speak with.