All Forum Posts by: Broc Mayo

I am going through this right now, you really have two options and it all comes down to money.

FHA: 3.5% but you pay PMI

Conventional: 15%, no PMI

You need to speak to a lender to determine what works for you in your market, my market is Denver and duplex runs about 600k minimum, so I have been looking FHA with the plan to refinance to conventional after a BRRR down the road. The PMI is crazy but its worth keeping upwards of 75k more in the bank. If you are in a cheaper market, the conventional could save you money. I would look around at your local lenders, I have spoken to a few and while the conventional vs FHA down payment rules can't change, rates and "creativity" can. The smaller lender I spoke to had more options on how to fund my down payment than the larger lender. Just call a few and explain your situation, good luck!

@Broc Mayo-  get  some lender  referals - contact them on the same  day  to  ask  your  questions and  get  current  quotes  if you want them ....make a  decsion to proceed  with getting a formal pre approval  started and in place ...if you thnk your  situation   might be  complicated or  difficult - you  might want to locate a  local lender that  can  spend  time  with you to help  figure out any issues 

@Broc Mayo I would say that one of your best options as a first time home buyer who is looking to house hack an either a FHA or FHA 203k loan. This would let you get in to a property at a low down payment and possibly have value add opportunity where you could build equity quickly. I would advice speaking with an investor friendly real estate agent in your market and see what lenders they can recommend who they know are familiar with and have done a FHA loan recently. Of course, you'll want to be sure to speak with multiple lenders to ensure you get a great rate but working with and lender that knows the process of a FHA loan can make a big difference.