New to this, Long Island New York

[Ryan Cunningham]

I am looking to move out and get my first property in the next few months.

I have listened to a bunch of the podcasts and i am halfway though the Beginners guide to real estate investing.

My Goal is to House Hack my first property. I want to rent out the house while i live in the basement.

Here are some questions I have:

1.) Is a FHA loan or a 5% conventional loan better?

2.) How much money should i have saved in the bank for closing costs/unexpected repairs?

3.) I see their is some home buyer assistance for people who live in NY such as the Down Payment Assistance program and The conventional Plus program (they help with 3% of the down payment)

How do i know if i qualify for these programs? I read the guidelines but they are vague

Thanks in advance for any and all assistance!

[Karl Dowden]

Congrats on closing in on your first property!

1) FHA loans require a lower down payment (5% of the purchase price) compared to conventional loans (for which down payments typically range from 20% to 25% of the purchase price). I believe the interest rates are similar, however FHA loans also require that the borrower pays for "mortgage insurance" which will be an added expense to your mortgage payments each month.

2) I have heard of closing costs as somewhere in the range of 7% to 13% of the purchase price. Some portion of this, if not all of it, is typically covered by the mortgage, but that would depend on the lender and what terms you reach with them.

3) I would recommend trying to get on the phone with someone who administers the program to learn the qualifications of each program available (or if that person doesn't know, ask them to recommend contacting someone who does). 

Good luck!