Looking for 203k loan advice

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Hey all,

I am a first time homebuyer looking to buy a duplex in the central NJ area. I've read up on FHA loans and 203k loans. Leaning towards using a 203k loan. I have approx 70k saved and debating using that for the down payment which would cover approx 20% even though he minimum is only 3.5%. Are there any pros/cons to putting 20% versus putting the minimum. Any further insight would be greatly appreciated.


@Michael Haley the FHA 203k loan has some serious down sides. The construction portion of the loan creates a lot of red tape that can hinder your ability to get deals under contract in some cases. If you do choose to use the FHA 203k loan, try to use a stream line loan so there is less red tape.

I typically recommend clients use the 5% down conventional loan for their first property. It is all around a better loan product than the FHA loan. After using your low down payment conventional option, you can transition to the FHA loan for your 2nd property.