Question of the day!
Picture this -
You’re working to get as little down as possible on a duplex.
House hack one side (owner occupy), rent the other.
FHA is a possibility.
You want conventional financing.
You could possibly purchase under LLC and go commercial.
What do you go for? FHA? IHM? Commercial? Consumer?
Thanks in Advance!
Hi @Paige Ferguson , I love to see you are from the western slope, I lived in Junction for a few years. If you use a conventional loan, you will need to put 15% down for a duplex. That should answer most of your questions. You will want to do FHA with a 3.5% down to owner occupy. You will need to put it in your own name for that type of loan. Also know that you will be paying PMI for the life of the loan with an FHA loan so you will want to refinance after a handful of years to remove or reduce your monthly PMI.
@Paige Ferguson I am not familiar of a LLC commercial loan that is under 20-25% without using a short term fix and flip loan. (which needs to be paid off in like 6-18 months with higher interest rates)
If your goal is to get a little down as possible (I am assuming you find a good enough deal that allows you to cash flow with very little money down):
If you have a really good credit score and DTI I just heard last week one lender was offering a 3% down conventional (I had no idea this existed)
If not, you can use 5% down conventional or 3.5% FHA.
Then see if you can apply for a down payment assistance program in your state (if they have grants then you won't have to pay that back.)
And (this will be difficult in this market) but asking the seller for seller's concessions so they pay your closing costs and the loan amount goes up!