Using FHA 3.5% Down or Conventional in this Scenario.

[Kyle Fairbanks]

Currently looking to purchase a property in the San Diego State University area to house hack. Stuck inbetween using the FHA 3.5% down payment to purchase a much more expensive property (duplex etc.)as property appreciation is great in this area or doing a conventional loan w/ 20% down on a property around 430K-600K. Want this as a rental in the future. Looking for cash flow as well as appreciation in the property value. Let me know your thoughts!

[Zachariah Hays]

@Kyle Fairbanks look into less than 20% down conventional options too. If you occupy the residence, you can put down 5,10,15% conventional.

I purchased using 3.5% FHA my first duplex and I regret not looking into the lower down payment options with conventional financing. Unless you have a high DTI or low credit score, look for lenders that support lower than 20% down payment for owner occupancy. They're out there!