100% Financing with a Credit Union: 15 years: First Investment

[Astrid Cuas]

Hello BP. My name is Astrid. Buy and Hold Investor in Greensboro, NC. Taking the first step: 

After finding BP and lurking around the site for a few weeks, listening to the podcast (BEST PODCAST EVER) and reading "The Ultimate Beginners Guide" I picked a niche. My dream was to be a big time flipper, but now my goal is to house-hack a small multi-family for 70K. My biggest concern, and I am sure most can relate, has been financing. BP motivated me to finally take the first step; look at properties and see what is out there. I know I do not have enough money for a down payment/closing cost and reno now, but figured by the time I found a good property and assembled my team I could have enough saved up (6-8 months). I contacted a credit union that I used in the past. This credit union does not offer FHA loans, but they did offer and approved me for 100% financing for 15 years at 5%. I was not expecting that. THIS CHANGES EVERYTHING.

Cons:
15 year amortizations means higher monthly payment; less cashflow
Does not come with a renovation loan. Rehab cost down the line would come from the money that I save for my initial down payment and closing cost

Pros:

I can ask for the closing cost to be rolled into the mortgage, as well.
$300/400 appraisal/inspection cost out of pocket and I own a multi-family.
No PMI

I called another bank for an FHA loan and for some reason a multifamily will require 15% down.

After reading about seasoned investors using hard money lenders and working really hard to find partners who will take 7%, this credit union loan sounds GREAT. But does anyone believe that I can do better as a first time home buyer; we’re all about finding the best deals, right? Should I keep calling around? If I tell other banks about the credit union loan will they try to offer me something better? Does it even work that way?

I am not military; my property will mostly not qualify for a USDA loan. I could live in the property, but I want the flexibility to move out after the repairs are done.

I have not read “The Book on Investing in Real Estate with No (and Low) Money Down yet. I will pick it up after I finishing the “Ultimate Beginners Guide”

Thanks in advance for any feedback. Glad to be a part of this community.