1st time buyer don't want to screw it up!

Fort Lauderdale, FL · Member since 2017 · 17 posts · 10 votes

Hey guys! I live in South FL and am planning on buying my 1st duplex. Should I apply for a loan as a 1st time home buyer or should I apply as an investor. I do plan on living there but only until i complete the rehab and find renter. Help i'm still in training wheels!

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Share RossBusiness Member

Real Estate Agent · Boynton Beach, FL · Member since 2017 · 250 posts · 135 votes

Yes, if you can possibly live in it for two years.. you can get financing as an owner and use the infamous 'house hack'!! Worth it. ;-)

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Jason D.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
If you are planning on living there for less than a year, it's an investment property and you would be committing mortgage fraud if you purchased it as a primary residence.
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Chris Rivers
OP
Fort Lauderdale, FL · Member since 2017 · 17 posts · 10 votes
8y
Originally posted by @Jason D.:
If you are planning on living there for less than a year, it's an investment property and you would be committing mortgage fraud if you purchased it as a primary residence.
Thanks Jason!
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Raymond J. RodriguesBusiness Member
Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
8y
@Chris Rivers what Jason said is completely true but if you plan on buying it as your first residence I would suggest living in one half of the duplex and getting in with 3 1/2% versus 20% as an investment property.
[email protected]619-456-8311
Helm Mortgage Corp.5127 Reviews
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Raymond J. RodriguesBusiness Member
Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
8y
@Chris Rivers I know of a few people in South Florida that could possibly help you out with any questions that you may have as I have lived here for a very long time! Best wishes
[email protected]619-456-8311
Helm Mortgage Corp.5127 Reviews
Website View Page
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Share RossBusiness Member
Real Estate Agent · Boynton Beach, FL · Member since 2017 · 250 posts · 135 votes
8y
Yes, if you can possibly live in it for two years.. you can get financing as an owner and use the infamous 'house hack'!! Worth it. ;-)
3 Reply
Maurice Grant
Cobourg, Ontario · Member since 2017 · 17 posts · 28 votes
8y
It is MUCH easier to get a loan as a home owner than as an investor, usually the interest rate is lower and terms easier, for example you can get a larger LTV.
You actually are going to live there so tell them that. If you decide to move out after a few months, well you are entitled to change your mind.
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Caroline Apostolos
Professional · Spring Hill, FL · Member since 2016 · 79 posts · 25 votes
8y
you can’t get a hard money loan if you live in it. So you will want to apply as an owner for whatever you can get.
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Nghi Le
Investor / Lender · Seattle, WA · Member since 2014 · 1k+ posts · 730 votes
8y
@Chris Rivers
If you can qualify for a conventional loan, and if the seller is okay with closing in 30-60 days, then that's just the cheapest loan you can get. If you intend to live in it, get a primary residence loan. If not, get an investment loan.
If you can't use a conventional loan on this deal, then you're left with hard money, which is going to be less of a headache than a conventional loan and will close much faster, but comes at a higher cost.
@Caroline Apostolos
What you're saying is generally true, but OP says she's going to live in it after the rehab is complete, at which point she should be refinancing out of the hard money loan anyway.
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Adam Schooley
Real Estate Agent · Fort Lauderdale, FL · Member since 2015 · 175 posts · 79 votes
8y
@Chris Rivers You should absolutely buy it as a primary residence! I see you’re in Fort Lauderdale. Most duplexes in good neighborhoods are running around $350k or higher. Why have to put $70k down plus closing costs and a higher interest rate when you could put $12,250 down plus closing costs and a lower interest rate. I prefer to keep my cash even if the monthly income is less. You can also homestead 1/2 the property while you live there to help with the taxes. Just my opinion. Good luck!
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Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
8y
@Chris Rivers Hey Chris, definitely apply as a first-time buyer and you can always REFi out and follow the BRRRR strategy as you finish your rehab.
Goodluck. Thanks! - Ola
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Chris Rivers
OP
Fort Lauderdale, FL · Member since 2017 · 17 posts · 10 votes
8y
Originally posted by @Share Ross:
Yes, if you can possibly live in it for two years.. you can get financing as an owner and use the infamous 'house hack'!! Worth it. ;-)
LOL Thanks @Share Ross From what I am reading how long I am willing to live there is a big factor.
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Chris Rivers
OP
Fort Lauderdale, FL · Member since 2017 · 17 posts · 10 votes
8y
Originally posted by @Ola Dantis:

@Chris Rivers Hey Chris, definitely apply as a first-time buyer and you can always REFi out and follow the BRRRR strategy as you finish your rehab.
Goodluck. Thanks! - Ola
Got it!
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