Hi all - I've been considering house hacking my way into my first multi family in the Denver/Boulder area. I work closer to Boulder so anywhere in between works. I was thinking of using FHA despite the insurance costs but I rarely see opportunities around. Is it just me or are deals very rare around here? Also, given the cost of real estate in the Denver/Boulder area, is FHA a bad idea?
Grateful for any thoughts!
@Zachary Alley FHA is the lowest down payment option you will find for multifamily at 3.5% unless you are VA eligible. The next closest you would get would be Home Possible (conventional) at 5% down for a multifamily with a marginally better effective rate assuming LPMI and excellent credit. So your trade off would be a slightly lower down payment with FHA but a slightly higher rate. Depends on what matters more to you, what your time horizon is, etc.
Thanks @Jared Bouzek. I don't want to be impatient with my decision to invest but I want to get started. My wife is a full time phd student at Boulder and until she's done, lower money down is our best option. So I guess my choice is between FHA now or conventional in another year or two. I appreciate your incite.
Its super tough to buy a multi with FHA in the area you're looking. Sellers are looking for someone with cash to either close quick or cover and gap in appraisal. There is too much competition from cash buyers and investors and generally the seller/ agent wont want to jump through FHA hoops for you unless you are paying way too much, which I don't advise. Find an off market opportunity and you may be able to make it work.
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