Down payment assistance? are the restrictions WORTH it?
So, I started this down payment assistance program course thing. I'm eligible and it allows me to buy a duplex and lets me rent the other side out while I live in one of the units. Of course, it requires that I occupy the property. I MUST live in the property for a minimum of 3 years tho. I thought "heyy, why not? they'll give me up to 7,500k towards my downpayment, and I have to put in at least 3k."
I think this is great, however, my INITIAL PLAN was to house hack it for ONE year (which is what my FHA loan requires a minimum occupancy length of) and after that year is up, I was going to try to start looking for the next investment.
So if I stick with my initial plan which was to move on to the next after that first year, of course I'll have the unit I live in on this first one rented out and that'll of course maximize my cash flow for this investment. IF HOWEVER I follow through with the down payment assistance, I would have to stay there an EXTRA TWO years before house hacking my next property. So I just wanted to see what you guys in the community thought about this. I know it depends on what I PERSONALLY want to do and how fast I want to do it and all that but I want to hear your opinions...What would you do? what are some other things to consider?
Most Popular Reply
If you can make more than $312.50/month after all expenses you should not take the $7,500 because you would make more renting it out after a year. But if you determine that you will only make $150/ month after all expenses you should take the $7,500 because you would make more.
400.00 x 24 = $9,600
312.50 x 24 = $7,500
150.00 x 24 = $3,600