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.
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