Updated about 4 years ago on . Most recent reply
Question about multifamily investing in West Cleveland
Hello all, I am currently in the pre-approval process for a multi-family unit (house hack) in Cleveland. I am looking to put about 5% down for a home- however one realtor I have been working with stated sellers have been less willing to work with FHA loans in comparison to conventional loans. I am hesitant to put the full 15% downpayment, but want to know that if I go for the FHA I will actually be able to find a home. Has anyone had troubles with this or have any advice?
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@Meghan Rahill
FHA tends to have a few more hoops to jump through vs conventional and I can understand why a seller would prefer conventional loans vs FHA ones.
With that being said, have you tried to get a conventional loan? You can put down as low as 3%.
The competition for multifamily properties isnt as high as compared to single family properties as most retail buyers don't want to be a landlord or wait for tenants to move out. If you're in a bidding war, FHA may cost you that property. If you're the first to make an offer, you should be ok.