What type of loan should I get?

Question

I’m currently searching for my first home to house hack in the Coachella valley and I’m wondering what type of loan should I get I’m a first time buyer but I want to invest in multi family. And what if I need to rehab the place do I apply for a separate loan or is there any alternatives?

Paul Welden · Answer

@Armando Acuna

There are renovation mortgage loans that allow you to include the purchase price + rehab costs into 1 mortgage.

• FHA 203k
• Fannie Mae Homestyle
• Freddie Mac CHOICERenovation
• VA Renovation Loan

Hope this helps!

Cody Neumann · Answer

@Armando Acuna

If you are willing to live on the property use an FHA with a low down payment and move on to another one after a year. If you need to do renovations use an FHA 203k (this requires you to use contractors to do all the work so be sure to factor those costs in). The FHA may be tough to get an accepted offer in this market as well. If you have the down payment for the conventional loan that may be a better option to get an accepted offer depending on your goals.

Lacy Roesler · Answer

Hi Armando,

I would recommend looking into an FHA loan with a 203K for rehab costs, or potentially working with a hard money lender to make a cash offer, then using the BRRR method to start your journey to building long-term wealth. I may be moving to Palm Springs in a few months and would love to discuss real estate investing with you further.

Cheers,

Lacy