Best type of mortgage for 1st time buyer, multi-property house?

[Guillaume Fortina]

Hi BP Community!

For (a) a 1st time home buyer, (b) looking for a multi-family property, (c) hoping to get a lower down-payment... what would you say is the best type of mortgage out there?

(I have heard of FHA; regular mortgage with 20% down, regular mortgage with less than 20% down; Home Possible loans by Freddie Mac; HomePath loans by Fanny Mae...)

[Chris Seveney]

Guillaume Fortina - assuming it’s under 5 units there are a lot of options and it depends on your down payment you want to put down. If you can put 20% down to avoid PMI that would be my recommendation as it lowers your cost and gives you equity in property in case the market begins to slump