15/1 ARM with 10% down plus a 10% HELOC
Hello BP,
I am in the process of hunting for creative financing for my first primary residence purchase. Please comment if the below scenario looks like a good combination. I want to buy a 2-4 unit multi next so this will help me save some cash for that.
$327,500 purchase price
15/1 ARM with 10% down @ 4.033% for monthly payment of $1255
10% HELOC 30 yr @ 7.74% for monthly payment of $231
Plan on paying off more than the minimum on the HELOC every month.
Quotes 30yr fixed have been coming on around 4.25 so the monthly payment will be about $1,300. So for $1455 a month or $155 more, I will be able to save $32,750 in down payment which can be used to purchase my first multi.
Thoughts? Thank you in advance for your help. Again, this is my first time purchase so if we need more information please say so!
Bill
More simply, can anyone comment on creative ways to minimize initial out-of-pocket cash by using a combination of a non-conventional loan and a HELOC or other?
I can't help you with that, but I do know you can look up special first-time home buyer programs offered in your area, like VHDA in Virginia will work with first-time home buyers, usually requiring a class, then they provide the extra loan for down payment funds on an FHA. My son used this for his first home and came to closing with $11 (after paying inspection and some other minor fees in advance).
Hello @Account Closed , welcome to BP!
Here are the standard "cheap" ways into housing. The Homepath is extra cheap because there is no associated PMI.
0% Down:
NACA (https://www.naca.com)
VA Loan (http://benefits.va.gov/HOMELOANS/index.asp)
3.5% Down
FHA (http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home)
3.5% AND Renovations
FHA 203k loan (http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou)
5% Down
Homepath Owner Occupied
Not as cheap, but come with renovation options attached to the loan:
10% Down
Homepath Investment (SFH only)
20% Down
Homepath Investment (Duplex only)
25% Down
Homepath Investment (3-4 Unit Buildings)
Auxiliary:
-
Real Estate Agent Massachusetts (#009532321)
- M and A Investing