FHA loan for beginners
Hello,
I am new to the real estate world. After doing some reading, I believe it is best to start off with an FHA loan. My question is on the requirements. I am wanting to finance a duplex, you know do the house hacking deal. What about the requirements to qualify. My credit score is pretty good (700-720) . I just graduated from school last year so I don’t have hard earned credit. How much money do they expect you to have in your savings in order to qualify? I called Bank of America because that’s who I bank with but it seem like it was nearly impossible with them. Do I show them the property I am interested in first? Would they also fund for rehab cost. Any extra InformatIon will be appreciated.
Most Popular Reply
If you aren't over the income limits I'd strongly suggest looking at the Freddie Mac Home Possible loan over the FHA. That's what I used to buy my three unit house hack, had never heard of it until the originator suggested it and glad I went that way. as low as 5% down on 2-4 unit, lower mortgage insurance premium and no upfront insurance payment at closing, and it's a conventional loan so stronger offer and less red tape than the FHA. And, the Home Possible does have a first time buyer requirement where the FHA doesn't so use it first if you can. Using a local lender may be a smoother process than a national name like Bank of America.