First Time Home Buyer Looking to Flip: Best Loan Option?

1 Reply

Hi there, I'm new to BiggerPockets but have been looking to get started in real estate for some time now. My question is regarding the best financing options for someone in my position. 

Having never bought a home before and with roughly 30k to put down, would it be wisest to use a first-time home buyer's loan? I want to flip in less than a year (ideally 2-3 months) however my understanding is that a first time home buyer's loan would not be conducive for this. Does hard money sound like the only option for my situation?

In the medium-long term I would like to flip for the next couple years and eventually build a multifamily portfolio that brings cashflow if this makes any difference. I would love to hear any advice you might have, or other suggestions on books or resources . Thanks for your time.

@Ben Bream

Welcome to BP and congrats on your 1st post!  I'm actually surprised no one has responded yet.  Hope you know that this is actually pretty rare.

Are you looking to do a live-in flip (i.e. live in the home while you flip it)?  If so, the conventional loan (and especially the 1st-time home buyer's program) can't be beat.  Putting 0% or 1% down on a house is pretty darn awesome, and is actually pretty rare too.  Most investors have to put 20-30% down.

However, this method is pretty slow.  If you don't plan on ever living in the house, you might have to use hard money.  

For your education, start with the Ultimate Beginner's Guide if you haven't already.  Then keep following the forums, searching for topics that interest you, listening to podcasts, and checking out some of the books that BP has published.