FIRST PURCHASE, MAX OUT FHA?

[Hugo Cardona]

Hi Everyone, 

I am looking to buy my first deal with FHA. I have $20k saved up that I plan on using. My question is as follows:

Is it better to buy a decent, 250-300k duplex in an up and coming location for the 20k FHA 3.5% or max out the county limit on 3plex/4plex and have my family help me out with the difference in down payment (which would be 21k + closing costs) on a 600k property.

It seems like its a much better deal to stretch my dollar and 3.5% financing as far as i can. Are there any downfalls I am not seeing?  Any advice on that strategy?

Thanks everyone!

-H

[Jimmy Dudley]

Make sure you speak with a lender to ensure the you have the money from relatives "seasoned." A lot of deals fall apart because people don't have the money for long enough. 

Plus max it out if you can, use every cent of FHA you can get your hands on.