House Hacking Loan (FHA vs. Conventional)

[Ben Nelson]

Hello BP!

I'm planning to do my first house hack in early 2021. Most of my research WANTS me to believe that an FHA loan is my best option (said differently, this is easily the most common recommendation or loan mentioned)... but I'm not convinced. For an individual with high cash on hand (25% of property value), an excellent credit score rating (800+), and a willingness to live in the property to get the primary residence interest rate, is FHA really the best option? Wouldn't it make far more sense to put down 5% and hold cash through a conventional loan or even put down 20-25% to avoid PMI through conventional?

I'd love to read other's thoughts on this, as I think most first-time house hackers may not have a lot of cash to invest with and likely that's why FHA loans look more appealing to help people get started. But in reality, if you have the cash and a good credit score, isn't it in your best interest to go conventional if you are chasing a healthy cash flow?

Thanks for your replies in advance!     

Ben