First Deal: New Build Duplex in Austin - Need advice on Financing

[Brice McKee]

Hi all,

I have an opportunity to build a new duplex on a lot in an appreciating area. I'd appreciate some expert advice on what the best financing strategy may be. I don't have 20% to put down (could maybe put 10% of total cost), so I had initially through FHA (I will live in the property) construction loan, however now I am realizing the FHA loan only allows financing for 1 unit dwellings.

Does anyone else see a way to do this with low money down? Working with a private bank to see about 10% down with interest only until the property is built. Are there other alternatives? Is it possible to buy the lot with FHA loan ($260k PP) and then get a separate construction loan ($300k total) that I put 10-20% down?

Thanks all