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Updated over 6 years ago on . Most recent reply
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FHA loan Downpayment for Duplex in Dallas - first time
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
Most Popular Reply
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@Tyler Austin the tenant rent is what it is. It's not like one person pays or doesn't. They pay their rent, then you take rent money and apply it to all of your expenses, mortgage included and pay the difference!
- Jordan Moorhead
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