FHA loan Downpayment for Duplex in Dallas - first time

[Tyler Austin]

Hello yall,

I'm moving with my girlfriend and her son to Dallas (where I'm from) from Long Island, NY mid-October. I want to buy a duplex as an investment using an FHA first time homebuyer loan. My plan is to rent out the other half, live there for a year or two, and move on to the next property. I've been working for landlords and as a real estate agent in Brooklyn for a few years so I know how to manage important aspects of the process, but some of it is new to me (I'm 26).

I have no cash. I want to use an FHA loan because it seems like the best option, especially with the idea of a 3% downpayment. I have credit in the mid 700s. My question is: for an owner-occupied loan, is the downpayment really just 3%? I've heard that I have to make a downpayment of 15-20% to avoid getting mortgage insurance. Can anyone provide some expertise on this? With my credit, can I really just use 3-3.5% down to buy a duplex I will use as an owner-occupied investment, or do I need to come up with 15-20%

Thanks and looking forward to hearing back.

- Tyler