House hacking with FHA Loan

[Tucker Kincaid]

For a starter property, house hacking is always one of the first recommended routes used on BP. This was my original plan and have gotten pre-approved for an FHA loan. But I was not aware of the MI and how high they can get with a 3.5% down payment.

What are the solutions have you guys found to combat this?

[Ashley Yoviene]

I have not done this yet and I am also researching, but I believe the move is to refinance into a more conventional loan once you have some equity (sweat equity, or some rehab maybe) in the property. Even if you don't get to the full 20% in a refi, I believe PMI is generally lower than MI with an FHA loan