First time FHA loan questions and advice
Hi,
I am looking to move into an owner occupied duplex with an FHA loan. I know you can put only 3.5% down but my first question question is if I have enough saved up for 25-30% down will I have to put a higher amount down? Second, If I can only put 3.5% down should I? Ideally what I am looking to do is put 10-15% down, ill still have more than enough for repairs/updates, plus enough leftover for saving for a downpayment after a year of owner occupancy. My thinking is why put only 3.5% down and have all that extra money sitting in my savings account earning a measly return for a year when I can put 10-15%, make repairs/improvements, and have enough leftover that after my savings/earnings of a year of owner occupied I will easily have enough for another purchase. I'm I missing something/not seeing the benefits? Is it better to do the 3.5% down and have the extra capital sitting in savings for a year?
Hope this all makes sense. I'm new to this and am trying to put it all together. All and any advice is much appreciated!
Thanks!
Most Popular Reply
Michael Morris good question. If you're going to do anything more than 3.5 don't do an FHA. If you have 20% and it works out with your other numbers avoid the PMI and go conventional. It really doesn't benefit you at all to put 10-15%, other than the lower payment. I would buy the first one conventional (5% down I believe), then shortly after buy another property or two.