Updated over 8 years ago on . Most recent reply
First Purchase Loan Type
Hi Everyone,
My name is Hunter and I am relatively new to the BP Community. I have been reading the UBG and forums, and listening to the podcasts while gearing up for my first purchase. I am interested in investing in buy-and-hold rental properties in Houston, Texas.
For my first deal, I would like to purchase a multi-family (likely a duplex) and house-hack. I have read and heard a lot about FHA loans across BP. The advantage is obviously a low downpayment (3.5%). However, I have been researching "Home Ready" and "Home Possible" mortgages. These are conventional loans that allow 3% down (5% for multi-family), and don't require mortgage insurance for the entirety of the loan like an FHA would.
I'd like to get some feedback on these different loan types, as I haven't seen them discussed much on BP. Are there any red flags I'm missing if I don't go with an FHA? Has anyone had a "Home Ready" or "Home Possible" mortgage that can provide feedback? Any other tips or things to look out for on my first deal?
Thanks in advance for the feedback, I look forward to discussing.
Most Popular Reply
Hunter,
I believe FHA to be popular on BP due to the low down payment as you mentioned and the ability to use it on a house hack. If the other loans you mentioned are available to you and you can meet the requirements to use them go for it. The best thing would be to get a knowledgeable lender that isn't just a sales guy looking to close a deal.
In my opinion the type of loan isn't as important as the deal being good and the numbers working in your favor. Obviously if you can make the deal even better with a certain type of loan you would take advantage of it.
Jeff Wagner and Phillip Morris with One Trust Home Loans are excellent resources here in Houston. To keep with the BP rules I am unable to put a phone number in. You can message me direct or friend request me for more info.