Updated over 4 years ago on . Most recent reply
FHA vs Conventional loan
I am 22 years old, and I have been working in the finance industry since I graduated from college(18 months ago)
Originally, I was looking to house hack a 3 family home. With the real estate market being very hot, I noticed that the FHA loan is putting me at a huge disadvantage when competing with buyers that are using conventional loans / or all-cash offers. Most sellers do not want to deal with FHA loans, especially when there are multiple offers on every house....
It feels like I have a very slim chance of finding something in this market with an FHA loan. However, In 3-6 months I should have enough money saved to be able to put a 20% downpayment on an investment property (2-4 units), and I can continue living at home.
Is it worth waiting for the market to cool down, and try to take advantage of the FHA loan?
OR jump into the Real Estate market with a conventional loan, meaning I would need a larger down payment, and have a smaller ROI.