Buy First Property For Ourselves

1 Reply

My wife and I have decided we need to make our first deal our own house. The problem is we don't want to tie up our cash so was considering using a mortgage. We both have 0 credit history so was considering an FHA loan.

My main concern is since it's so difficult to find deals right now in Dallas, won't having to use a loan to do the deal make it even more difficult since motivated sellers want cash buyers? If I were to buy with cash and then refinance out with an FHA loan, would that be a good idea? If so, how long would this tie our cash up? Anyone have any advice?

Buying with cash will certainly put you in position of having a stronger offer.  If you're talking about an all cash purchase of the property, you can turn around and finance out of it immediately, since you won't have to worry about seasoning an existing mortgage.

If you do all your prequalifying and preapproval work up front, it shouldn't take more than 30-days to close. The only thing you have to worry about is making sure the house can be underwritten in its current state. FHA has some pretty stringent rules around property condition.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you