Use pre-qualified FHA Loan vs wait for Conventional Loan

2 Replies

Hey BP....need advice from some you you seasoned professionals. I've been pre-qualified for a FHA loan but have not found a home. I'm qualified for 115k but I'm being kinda picky and unsure. I want to make a smart decision out the gate. In the meantime I'm working on increasing my credit score so I can qualify for a conventional.

Should I wait to qualify for the conventional loan where I will have more options as a investor or should I take advantage now of the FHA? I know with the FHA I will have to occupy for at least a year and at 115k I'm not finding alot of homes/duplex/condo's that I like. Maybe I need to get out my feelings and look at this from another perspective. By the way I live in Dallas, TX. I've done alot of reading on FHA, HUD homes and even the reno program wiith FHA (203K). Still seeking advice from this great community.

Thanks in advance,

Tamara

Hi @Tamara Batsell ,

Both. Keep looking for what you can do today, and continue working on broadening your options for tomorrow. If you wait for everything to line up 100% perfectly, you may find that you are forever on the sidelines... waiting. 

Chris Mason, Lender in CA (#1220177) and California (#1220177)
415-846-9211

@Tamara Batsell ....@Chris Mason hit it right on! No house will be 100% what you're looking for. I'm a broker in Dallas and I usually tell my clients to make a list of must haves and would likes and then I dialogue with them on what they can be flexible with.

With that being said I know the market is pretty competitive now but don't give up! As things slow down for the holidays you may be able to scoop up a great deal.

The big question is are you looking at this from a business perspective (i.e., this is your first home but eventually you will rent it out)? or are you looking at living there for awhile? I say this because this may help you get your mind right for the purchase and may enable you to be a little flexible on your choice of home. Of course it's important that you like the house but if you are looking at in the long run as an investment property you may have to keep that in the forefront of your decision.

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