First Multi Family Purchase

[Darien Terrell]

Hi All, 

I am looking to purchase my first multi-family property to owner occupy in the Akron/Canton area. My plan is to househack for a year and then transfer the property to an LLC after 12 months. I'm looking to put a downpayment of 3% - 5%. For this specific scenario, would you suggest an FHA or a conventional loan and why?

Cheers

[James Bradin]

First of all congrats!  I house hacked small multi's for my first and second primary homes.  It is a great way to generate wealth.  

To answer your question I would go with an FHA loan. I have not heard of anyone securing a conventional loan with 3-5% down. I have personally never used a FHA loan, but it requires a significantly smaller downpayment compared with a conventional loan.