All Forum Posts by: Paul Defngin

Bradley Pietrzak , first and foremost like everyone else says here-do not commit fraud! The most prevalent fraud in mortgages is occupancy fraud. It is not worth you going to jail or be fine a $1M or both for committing fraud just before you even start with your RE business. Do it right. That said, you can own an investment property using conventional financing with 15% down. You will be subject to paying PMI for the life of the loan. I just did You can also purchase a duplex or any 2-4 unit properties using FHA financing as mentioned above. That only requires 3.50% but you need to have 3 months reserves, etc. That could be one way for you to buy your first home and also have the other units cover your mortgage. Perfect for singles or small family. There are as many successful participants have said here multiple other ways of buying an investment property using alternative financing options. This is the space to learn it. I'm in this boat and I've finally decided to start reading and get serious about learning more about the alternative options. Good luck.

@Chris Mason thank you sir. Doesn't it just boil your blood with some of the company we keep in this industry?

@Art Maydan, if you are a first time home buyer you can go conventional with just 3% as @Julia Dugger mentioned. There are some restriction related to median income in your county and whether the property is in a certain census tract. 

That said, I don't believe that FHA necessarily make your financing less attractive. It seems to me that there are some issues here that you have control over. #1 is your lender. If he has done his job, he should be reaching out to the listing agent to reassure them that he has reviewed all your necessary documents, actually pull your credit and pre-approve you. If his underwriter review it, then even better. #2 agents who thinks that FHA is somehow a problem probably just need to educated. Unless your are looking at properties that are REOs as @Julia Dugger mentioned above, or are have serious issues that are deem a risk to your safety and health; there really is not much difference between FHA and conventional.

As far as that LO asking you to pay a fee to get preapproved as a TBD-I  would follow what everyone says already-go to a differerent lender. We do that for free.I wonder what CFPB would think of that LO. Jeez

By the way I have ethical and professional lender friends in IL if you need referrals.  I hope you and your wife gets into your new home. Good luck.