Advice on buying a first home/property

[Chris DeSisto]

Hello all,

I would like to crack into buying buy and hold properties. I have never bought a home in my life but I have saved up some cash (Not totally sure how much I am willing to invest yet). I am looking to possibly buy a multi-family property as a first time home buyer. I think I can do an FHA loan and live in it for a year, then I could move? Do you need to stay longer? Also, should I use the FHA loan to buy a multi-family home? Should I wait to use that when I decide to buy a single family home for myself? Can I do an FHA loan under my name and another under my future wife (engaged)?

I am sure each market is different, I was looking at some multi-family places that go from say 230k-400k or go out of state and look for 75k places and go from there etc. Ideally I would go low as possible to have the lowest cost (in theory). I am looking for any advice and ideas. I have thought about mobile home units or lots too. Lots might be way to much I honestly don't know.

Thanks!

Chris

[Andrew Postell]

@Chris DeSisto if you don't use a FHA loan then the other likely choice would be a conventional loan (assuming your not a Veteran for a VA loan or buying a home in a rural area for USDA loans). Conventional loans are governed by Fannie Mae and Freddie Mac (if you recognize those names). A conventional loan requires 15% down on a multi-family unit property if you are going to live in it. You can certainly "save" using the FHA loan option for later if you want. A conventional loan does ask that you live in the property for 1 year but if you go to FHA 2nd it won't be as important. Meaning, that if you have an FHA loan and are going to a new FHA loan...well, you are asking the same department for a loan. They will have a few things to say about you borrowing money again. For example, if you don't have 25% equity in that 1st FHA property...you can't use the rental income to qualify. That's an FHA to FHA rule. Same thing with the 1 year rule. Remember, you are going to the same agency to get these funds if you get 2 FHA loans. But if you went from Conventional to FHA...those rules aren't there. Or FHA to Conventional those rules aren't there. Because you are asking different agencies for money. It's a little strange and confusing how this works so please do speak with a lender that knows these nuances and can help you navigate all the little intricacies to both. Hope this helps!