Best route for Owner occupied with FHA financing

5 Replies

Hi all, 

Ill try to make a long story short...

Before learning much about real estate investing I started searching for a home to buy for myself. I was approved for an FHA loan with and NHF grant and found a property. Turns out today, 1 week from the closing date, that I may not be able to purchase the home due to information I was unaware of. The bad news is I may not get this property. Good news I may be able to now take advantage of all the investing opportunities I have learned about!

So, now I am potentially looking to purchase a duplex or a home with an ADU/MIL so that I can rent out one of the units for cash flow. Does anyone have advice for me? From my research it seems like the best way to go, since I will be owner occupied and I have financing, is to take advantage of the low interest rate and get a duplex or multi family. Should I consider another route that I am not aware of?

I hope I am posting in the right section...newbie. :)

Thanks!

Hi Jazzmenn! 

I'm a newbie as well and I am considering doing the exact same thing as my first purchase. I think it's a great way to start. Sorry couldn't give any advice but I'm definitely following your post. Good Luck!!!! 

Hello Ladies

I'm a newbie and getting ready to purchase a multi unit.  I am taking my time to check everything out plumbing electrical tenants and there leases past bills from owners regarding. Utilities because I do not want that added cost.

I'm checking property insurance rates anything I can think of I'm researching and checking.

Research and due your due diligence.  Someone with more experience will respond soon.

Good luck

Elana

Hi Jazzmenn,

FHA loans can be a great way to go for a first time buyer because of the very low down payment. The FHA lender will do their own inspections/appraisal and may require some repairs to be completed before escrow closes. Typical things are Section I items on a pest report, or any visible damage to the home.

If you don't have a large down payment, FHA is a great way to go. Down here in the San Francisco Bay Area, some sellers are hesitant to accept offers with FHA financing. To be as competitive as possible, ask you're mortgage broker if they can write you a letter of full loan approval instead of pre approval. That is helping people get their offers accepted.

I hope that helps some. 

My apologies that I can't help you with that question, however that is the route I'm planning on taking as we'll. What is NHF grant

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