Looking to house hack

[Mamadou Diallo]

Hello everyone. I am a wholesaler in Iowa looking to get started on house hacking. Im looking to buy my first house hack very soon. Are there any tips or advice that you guys could give? 

[Kevin Romines]

I would look at either a FHA loan at 3.5% down or a Fannie Mae Home Ready or Freddie Mac Home Possible loans at 3% down payment. Any of these 3 loans can help you get a low down payment. The Fannie and Freddie loans have mortgage insurance that can be cancelled once you have 20% equity. The FHA Loan has lifetime mortgage insurance on it, so you can only get rid of that MI by refinancing into a Fannie / Freddie loan.

You can also look into USDA as most of Iowa is good for USDA, however the drawback with USDA is that they hold the debt ratio to 41% compared to Fannie/Freddie at 50% and FHA at 56.9%. Also, UASD has loan limits that are much smaller than FHA, Fannie Freddie.

I hope this helps?