Updated about 3 years ago on . Most recent reply
Making our move
My wife and I are buying this year in the area between west palm beach and broward county . We want some ideas on what type of loan options to go with . Our intention is to live there for a year while preparing to buy another one . Then rent the first house out and continuing the process . (Yes I know use FHA and buy a duplex) however if the market in south Florida has been insane the last two years. I also have a lender who has informed me of 3% down on conventional loans and a 5/1 arm loan program . Not sure which would be the best option . We are open to buying a house that we can add value to over the year such as converting a garage into a bedroom and etc. or even possibly turning a single family into a duplex. Just looking for guidance from Someone with experience in south Floridas market .
Most Popular Reply
3% conventional is available if you are a first time homebuyer (meaning no ownership of a home in the prior 3 years). If you are going single family this is a good loan. FHA shines in small multifamily because the down payment stays low at 3.5% even with extra units and that's not the case with conventional. Keep in mind that if you get an FHA multifamily loan you will be able to use 75% of expected rents on the other units as income to help you qualify. Also, if you can find a good deal where the seller will give you credits, you may be able to buy down the rate without paying additional out of pocket at closing.