First time home buyer or Rental

3 Replies

If I buy my first property as an out of state rental will I not be able to get a First time home buyer loan for my own house I’d actually live in? What’s the difference between the first time home buyer loan and regular loan in the state of California?

Seth. 

For the FHA loan you put down like 3% but you need to live in that property for 1 year.

For a turnkey rental purchase you have to put around 20% down but you do not have to live in it.

Let me know if you have any more questions. Would love to help and I'm located in LA as well. 

Originally posted by @Seth Bender :
If I buy my first property as an out of state rental will I not be able to get a First time home buyer loan for my own house I’d actually live in? What’s the difference between the first time home buyer loan and regular loan in the state of California?

 What you need to look at are the differences between an owner occupied loan & a non owner occupied loan. There are several different owner occupied loan products that you can get that will require very low down payments such as 3% down, 3.5% down, 5% down etc...

A non owner occupied loan is going to require at least 15% down if it's a single family home & you have between 0-4 residential mortgages. A non owner occupied loan is going to require at least 25% down if it's a 2-4 unit property or a 1-4 unit property if you have between 5-10 residential mortgages in your name.

I was just unaware that purchasing a out of state rental property out of state will prevent me from getting the first time home owner loan that’s is live. I am about to close on a rental and just heard that I might not be able to get the loan and since properties are very expensive in California it is concerning.

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