understanding the 1st time home buyer 4% vs 20% downpayment

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understanding the 1st time home buyer 4% vs 20% downpayment

Sonny Nguyen
Merchantville, NJ · Member since 2016 · 5 posts · 1 vote

hey biggerpockets family, 
this might sound silly to some but i am a first timer home investor.
i keep hearing what i can and cant do's.
my question that i need answerd is, if im planning to buy a home , rehab it and then flip it. i would have to put down 20% tp purchase a home vs putting down 4%. is that correct?

thank you

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Brie SchmidtBusiness Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
10y

@Sonny Nguyen - depending on the number of units, it is 20% - 25% down payment

The loan programs that offer less than 20% down are for owner occupied buyers who certify that they will live there for a year

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    10y

    @Sonny Nguyen - depending on the number of units, it is 20% - 25% down payment

    The loan programs that offer less than 20% down are for owner occupied buyers who certify that they will live there for a year

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    2Reply
  • Sonny Nguyen
    OP
    Merchantville, NJ · Member since 2016 · 5 posts · 1 vote
    10y

    oh i see. aha
    thank you for your time and information. i appreciate it

    0Reply
  • Daniel Lee
    North Hollywood, CA · Member since 2015 · 10 posts · 7 votes
    10y
    Hey Sonny Nguyen , I believe if it's an owner-occupied property, you'd be able to do the 3.5%-5% down payment under the FHA guidelines. If you're going to flip, then maybe consider an FHA 203k loan to also cover the rehab costs. Hope that helps!
    1Reply
  • Sonny Nguyen
    OP
    Merchantville, NJ · Member since 2016 · 5 posts · 1 vote
    10y

    yes that helps alot, thank you!

    0Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    10y
    FHA is Not for flipping, owner occupant only, certifying you will reside there for at least a year.
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