FHA Loan Basics on first Investment

[Jimmy Ready]

Hey everyone,

Currently looking at my first investment property. Looking to do a live in flip/ house hack. Numbers are all checking out on the property. Im just in the process of comparing the advantages and disadvantages of an FHA vs 30yr fixed mortgage. I know FHA has a much lower downpayment than a typical loan but that comes with some guidelines.

Where could I find out more about these? 

I know so far is that 1) you need to live in the home for at least 1 year and 2) all the work must be done by a licensed contractor. 

Any specific forums on this or anywhere I could learn up fast?

Thanks 

Jimmy

[Omar Khan]

@Jimmy Ready From a financial perspective, the biggest impediment is that you will always have to pay MI. Unlike conventional loans, where the MI drops off once you are at 20% equity, FHA loans will always have you paying MI.

If you're thinking of re-fi'g, that will just add to costs (and eat into your profits). If you can do 4-5% down payment and have a decent credit score, most local lenders (mortgage brokers, credit unions, local banks) will be able to offer you a way better (overall) deal than an FHA loan.