What type of Bank Loan should I look for?
Hi All,
I'll respect everyone's time and keep this short and to the point. I'm just starting out as a newbie RE investor and I met with a loan officer at my local bank (CHASE). I wanted to request a pre-approval for a loan and see how much I can afford to borrow. A few questions came to mind and I didn't want to ask the loan officer. Keeping in mind that banks require 25% down for rental property loans and I do not intend to live in the property (preferably multi-family):
1. Would it make sense to take out an FHA loan at 3.5% down (tell them I plan to live there) and just pay the additional insurance from the rent proceeds until either I hit the 20% mark and/or I am able to refinance pay in to get me to 20% down?
2. Same question but instead of an FHA, just tell them I would be living there and opt for the 20% down instead of 25%.
3. Can I get an FHA loan for a multi-family unit? (should have asked that first)
For my first property I plan on spending no more than 80k so while I can afford the downpayment and closing costs, I'm just thinking of ways to stretch my funds so I can invest in more properties.
Thanks in advance!