Rental Property Investor · NV · Member since 2017 · 63 posts · 26 votes
Good day my BP Members,
As a new REI i'm still learning the ropes of the trade, so from what I know, I can an FHA loan at 3.5% down to purchase a small multifamily property. MY question is, Is it possible to use a Conventional loan to purchase the property without putting 20% down if I live in one of the units? Also I know you can only one FHA loan at a time, So in the future if I do use an FHA loan and get it refinance into a conventional loan will I be able to keep using an FHA loan again?
For all these scenarios, I'm planning on living in one of the units to "house hack". Anyway, thank you for taking your time to read through this.
Investor · Los Angeles, CA · Member since 2016 · 577 posts · 240 votes
9y
If you are going to house hack then use an FHA loan. You can get another FHA loan if you refinance it out. But not sure if that is going to make sense to refinance out an FHA loan because of the low interest rate.
Investor · Towson, MD · Member since 2014 · 472 posts · 257 votes
9y
And to @Antoine Martel 's point: while FHA rates are lower, MI is much higher so your APR (overall payment) is typically higher. Also, that MI never goes away on an FHA loan so you usually will want to refi out of the FHA.
And to @Antoine Martel 's point: while FHA rates are lower, MI is much higher so your APR (overall payment) is typically higher. Also, that MI never goes away on an FHA loan so you usually will want to refi out of the FHA.
Thank you for your input, both of you guys have great points.