First time home buyer

[Anthony Caleca]

Hello everyone I am 24 years old from Staten Island, NY and I am looking to purchase a house for me and my fiancé. We have been together for quite sometime and just recently we bought got better jobs that we are able to start saving money.

For my first purchase I want to buy a 2 family house, live in one and rent out the other, and use that renters pay the mortgage and expenses each month. So I found a house in a great area of staten island that is relatively cheap because it is a short sale. It's a 2 family 5 bedroom 3 bathroom house for $375,000 (pretty low considering Staten Island prices). The thing is I want to buy this house, but I donot want have the money to put down for the 20% down payment.

Is there any mortgages or suggestions anyone might have where I can buy the house with no down payment and mortgage the full amount, and go about my plan of being an owner, and renting other apartment. I used a basic mortgage calculator online and it said with $0 and 4% interest rate total expense will be about $2,400/month. If I live in one and rebt the other for about $1,500-1,700/month it will cover more then half the mortgage.

Someone please help me with any advice or suggestions, I can post a link to the listing of it can help.

[Matt Heath]

Hey Anthony,

I would advise using an FHA loan. The down payment is 3.5%, but you have to live in it for one year before completly renting it out. FHA only allows one FHA loan at a time. This is a great way to start with little money out of pocket! I would call up some local banks and ask around for the best rates. I recently purchased a four plex with an FHA loan with 3.5% down and they used the security deposits as a form of the downpayment. This saved me even more money! :) Wish you the best of luck!