Hello Everyone! I am a new real estate investor and I'm trying to determine the best way to finance my first property. I have been told that it could be better to save the FHA loan for a later property (Possibly a personal one), if you can put 20% down for a standard 30-year fixed loan. I am comfortable putting about 15% percent down for the properties I'm looking at and "can" put down 20% but will need to be stretched pretty thin. Open to any suggestions or past experiences, thanks!
Hello Everyone! I am a new real estate investor and I'm trying to determine the best way to finance my first property. I have been told that it could be better to save the FHA loan for a later property (Possibly a personal one), if you can put 20% down for a standard 30-year fixed loan. I am comfortable putting about 15% percent down for the properties I'm looking at and "can" put down 20% but will need to be stretched pretty thin. Open to any suggestions or past experiences, thanks!
If you have access to VA, use that. On FHA and conventional, when you put less than 20% down, they hit you with Mortgage Insurance which can eat up any cashflow. Have a mortgage broker, not a bank, run different scenarios. It can be a substantial difference.