FHA 3.5% Down or Conventional 15% on MFH?

[Johnny Lasek]

Hi all,

Looking for a MFH 2-4 unit to buy and live in. I’m not doing much rehab on it, so mostly turn key, and finding one that I can cash flow when I eventually move out of the MFH into another property. I figure while I’m living there, I won’t be making cash flow, but I’ll be living there temporarily for $500 or less per month which is much better than my situation now.

Anyways, my question is about the down payment. I spoke to a lender who says I can get an FHA with 3.5% down or a conventional with 15% down only for a 2-unit.

My question: is the FHA loan only useful if I put a low down payment and keep moving out/in other MFHs year after year with and more FHAs? I think I'm only going to move in and use the FHA once. I don't plan on moving in and out utilizing the FHA loan. So in that case, is it a poor financial decision to only utilize this once, with the mortgage insurance and everything? My capital is limit FYI so that's one reason why the 3.5% is looking like a solid choice for me (now).