Repeating a 5% Conventional Loan

[Nick Burkhardt]

Hey BP!

About to make my first investment in the 4-6 months and I'm already thinking about the next deal. I have about 37K saved and will need to utilize a low down payment loan program. Initially I was thinking FHA was the way to go, but after getting to know my market a little better, I am reconsidering, and thinking it may be better for the long run to go with a Conventional 5% down loan. This way my PMI drops off after 20% equity is built and it adds to my cash flow.

My question is, can I keep buying 5% down conventional properties, barring the lender gives me the loans? Or, must I have that 20% equity built, BEFORE reinvesting in another property with the same loan?

This is only my second post and I'm LOVING the feedback from all of you! Thank you so much for your valuable advice in advance!

-NB

[Nick Burkhardt]

@Dean Poff ii thanks for the info! So maybe my lender is the same and I’d have to same the 10%-15% DP. I’m more than ok with that! To me that’s so worth it to lose the MI during the life of the loan rather than FHA which stays with you forever and is more restrictive.

Is there a set point at which the MI comes off the loan? Is it a set percentage of the loan paid? How does that work?