FHA vs Conventional, I want to understand Real estate financing

FHA vs Conventional, I want to understand Real estate financing

Member since 2021 · 1 post · 0 votes

I am trying to pull an out of state deal, in a state I used to live in and could possibly relocate to.My goal is to buy a multifamily property. after talking to a few lenders I have learned that there are 2 types of loans that fit my need FHA and conventional both at 3.5% DP. I understand the FHA lending process even for first time home buyers. The conventional 3.5% DP however, what are the criteria? Does the property have to be my primary residence to purchase this at 3.5%? does this vary by lender? What if the multi property I want to purchase is fully rented out? Hoping to get some help as a newbie

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  • Real Estate Broker · Berkley, MI · Member since 2021 · 62 posts · 47 votes
    4y

    Hey @Bankole Olonilua!

    I am a mortgage consultant with Wells Fargo. Terms do vary from lender to lender. You can go FHA (if primary residence) and you go go conventional whether primary or investment. FHA you can put as little as 3.5% down. And conventional DP will vary.

    Shoot me a message and I can go into further detail!

  • Member since 2021 · 4 posts · 0 votes
    4y

    Hi @Bankole Olonilua

    You can put 3.5% down with FHA if you are going to occupy the home as your primary residence. For conventional financing, you would be required to put 15% down for a two-family if you are going to reside in one of the units and 25% down if you are planning on renting both units out.

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