Do I go with an FHA or Conventional Loan?

[Drew Zaruba]

Hi guys, I am new to BiggerPockets and new to real estate investing. I am a college sophomore looking to buy a house for me and my three roommates to live in next year. I plan on house hacking with them paying down the mortgage every month. However, I have not decided on if I should go with an FHA loan or a conventional loan. I have more than enough to put down a 20% down payment, but I am wondering if I should still go with an FHA loan so I have less money into the property. This would allow me to also buy another property with a conventional loan later this year to start renting out. So my question is, Should I go with the FHA loan or go through a conventional loan? Thanks guys!

[Jeff Brower]

If the property you are looking for is relatively cheap, use the conventional. Save your one FHA opportunity for the largest/most expensive home you can get into. I always advocate to find a nice 4 unit so you can leverage as best as you can with the 3.5% down. Its all about leveraging the cash you have on hand in the best way possible. Be patient.