19 Years Old and Trying to Decide on Financing Route

[Ryan Ness]

I am 19 years old and working on securing my first income property. I have been following my local market for the past year through an email list that I'm on with my Realtor and know that most properties range between the $100,000-$140,000 range for a 2 unit multi-family that I plan to househack in. I understand that a conventional loan usually requires a 20-25% down-payment when going through most lenders, but looking at this I know that this is a lot of money to have in a deal, and on top of that I also know that I'd like to have money on the side saved up as well for any costs such as unexpected maintenance that may come up on the units.This brings me to a more round number of needing $28,000+ for in cash sitting for a deal. I am trying to come to terms with the usage of an FHA loan as when I run the numbers for the down-payment and compare the interest rate to what a conventional would offer, it actually doesn't seem to be that bad of a deal. I know that there is the special insurance that's paid on top of having the FHA that can be a disadvantage, but I'm wondering how people go about approaching their first deal because I don't think that many people actually toss the full $28,000 at their first deal. I'm really liking the idea of an FHA due to it not requiring as much money in the deal and that it would allow me to just get started much faster, and would also have the restrictions in place that require the property to be much more livable (making it a bit closer to a turn-key). I just would like the convincing and peace of mind that having lower money down isn't such a bad thing as I've been raised to try to avoid any debt possible. Hopefully some experienced investors may be able to chime in to help! Thanks in advance!