I'm a newbie in real estate investing. I want to get a FHA loan to get my first rental property. I plan to stay in it for a year or two. Is this a good way to get started?
That's what I did, although 5 years ago when I purchased my home at 22, I didn't have a whole lot of cash saved up, so that was my reasoning for FHA. It worked out well for me, I just refi'd to a 15 year, so no more PMI and higher rate. BUT, my area has increased greatly since 2010 when I purchased the home, and the equity is there.
I am in the same boat right now, I just asked a question about Fannie Mae's 97% LTV loan that was announced back in December. Supposedly there are lower PMI % for this type of loan, plus 0.5% less to put down on the home, and no fees upfront. I like this better, only stipulation is at least 1 borrower has to be a first time home buyer. However, I hear this morning Obama has decreased the PMI and the upfront fees on FHA to compete with Fannie's new 97% loan. I'll be scouring the forums for more info on these loans in the coming days.
Free eBook from BiggerPockets!
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.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!