First, of all I am new here and wish I would have found this website a lot sooner! I currently live in a duplex with my wife outside Metro Detroit. It is in a very nice neighborhood which is "trendy" and growing at a very fast rate. I have the opportunity to possible purchase both portions of my duplex and live in one side and rent the other side out (We have never owned a home and just got married in June). The other side currently has a tenant and they do not want to move out for a while as they are going to retire and move south in 5ish years. My wife and I do not have the money saved up to put a 20% down payment on both sides (probably $315k sale price) but the rental income from the other side should be about $1200-$1400 per month for the area.
Being a complete newbie in this, it's a bit daunting. However, I feel like this is an opportunity that we shouldn't let go without at least considering. There is so much information out there and trying to get financing for that large of a property is something I have no idea where to even begin. What advice would you give on this topic? Is it something you could do a FHA loan with owner occupancy rules (we plan on living here for probably another 2 years) ? Thanks in advance for all of the help!
You can buy this home under FHA with 3.50%down payment and 5% down payment under Home possible. Ask your lender to give you both options presentation so you can pick the right product.
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