Hey everyone, I have a quick question. So, I'm looking to obtain some rental properties through house hacking. I'm thinking for my first property, I can get it through a first time home buyers program. Is this a good idea? Why or why not?
Yes but Fha states That you have to live in it. I believe the first year.
That's what I plan to do, then after a year, if I'm able to, rent it out and obtain another property.
What's up Jonathan.. I plan on doing the same thing here in San Diego. Do you know what type of property you plan on purchasing first?
I love first time home buyer/personal property loans. Heck I own 5 properties with another 3 in the plans for the next 6 months and I STILL love all the cheap loans i can get. If you are going to house hacking, I would recommend you exasperate FHA. We personally love 5% conventional :) They are a house hackers friend! Good Luck
@Jeff Elmore You know, I think I'm going to get a single for my first. I would like to get a duplex but not sure if I could handle living in the same home as my tenants on my first one.
@Elizabeth Colegrove So, first time home buyer loans can be acquired more than once? And is it possible that I can get one without a down payment? What would it depend on?
as @Elizabeth Colegrove mentioned, if you can get to 5% you will generally qualify for a 'conventional' loan and will not have to pay PMI.
You have to weigh the cost/benefit of that 2% capital in your pocket and paying PMI (if you go FHA) versus the other way around.
Also, FHA requires 1 year of owner occupancy, so you will be able to purchase 1 property per year through this financing vehicle.
I agree with Mitch. You should go with FHA loan. FHA loan limits were established to define how much you can borrow for a HUD-backed mortgage. Each state has different limits, so be sure to look up your state to understand what is available for your FHA home loan.
Jonathan I just purchased my first home in October and went the conventional 5% down route.. You can keep it for a year then rent it out but what I did was find a home with the space to have roommates so I live in a 3bed 2 bath live in the master bedroom and rent the two other rooms out to a boyfriend/girlfriend they use one as their bedroom and the other as their office. This pays just about my mortgage so it allows to save more money towards future properties. Hope this helps (make sure you get good roommates if you do this)
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