VA, FHA, and Conventional Loan Order

[Paulo Metts]

Hello BP! I'm eligible to use a VA loan, and hope to use an FHA loan to purchase a 4-plex with each loan type. I also have enough saved to put 20%-25% down for another 4-plex by using a conventional loan. I have enough to cover all the closing costs for each type of loans. I already know about the residency requirements for each type of loan, and I know I can't necessarily use all three at the same time. I was hoping someone could give me advice in which order to use each loan type (VA, FHA, conventional) and why? Meaning, should I get a VA loan first, wait a few, get a conventional loan, wait a few, then get an FHA loan, or whatever order is best? My goal is to buy at least three 4-plex units using the three loan types. Thank you all in advance.

[Stephanie P.]

@Paulo Metts

I would go VA for probably two until my entitlement is full and then FHA for a few properties, living in them for at least a year each, and then conventional for another owner occupied and then an investment property. Use the lowest down payment product first for as long as you can so you're using someone else's money to build your empire. Once that's exhausted, go to the next lowest down payment option and the next etc... until that's exhausted and then do the next.

All of this means you'll be moving quite a bit, but if you're gaining rental properties (I would certainly buy units at this stage of the game), and the properties are close to one another, why not?

One girl's opinion.

Stephanie