FHA loan for beginners

[Juan Alvarez]

Hello, I am new to the real estate world. After doing some reading, I believe it is best to start off with an FHA loan. My question is on the requirements. I am wanting to finance a duplex, you know do the house hacking deal. What about the requirements to qualify. My credit score is pretty good (700-720) . I just graduated from school last year so I don’t have hard earned credit. How much money do they expect you to have in your savings in order to qualify? I called Bank of America because that’s who I bank with but it seem like it was nearly impossible with them. Do I show them the property I am interested in first? Would they also fund for rehab cost. Any extra InformatIon will be appreciated.

[Matt Vezina]

If you aren't over the income limits I'd strongly suggest looking at the Freddie Mac Home Possible loan over the FHA. That's what I used to buy my three unit house hack, had never heard of it until the originator suggested it and glad I went that way. as low as 5% down on 2-4 unit, lower mortgage insurance premium and no upfront insurance payment at closing, and it's a conventional loan so stronger offer and less red tape than the FHA. And, the Home Possible does have a first time buyer requirement where the FHA doesn't so use it first if you can. Using a local lender may be a smoother process than a national name like Bank of America.