FHA Loan with House Hacking. And how to run the numbers

[Carloz Gil]

Good Morning BP Community! 

What are your thoughts on FHA loan? Pros, Cons? What should I look for and what should I avoid?

My wife and I are looking into buying a duplex to house hack. Since my wife gave up her lifestyle in Texas to come to the fridge winters of Pittsburgh, I'd like to provide her with a comfortable apartment. The duplex we are looking at tend to be a bit more expensive since they are 2 bd/1 etc and as such, we'd like to take advantage of the low down payment FHA has to offer. An additional problem I am bumping into is running the numbers. When I use mortgage calculators, the low down payment and *fingers crossed* relatively low interest rate gives a large monthly payment. What do you all advice when running the numbers for an FHA loan?

[Harjeet Bhatti]

@Carloz Gill Its true FHA has lower interest rate compare to conventional mortgages. It could be higher MI in your case if your FICO is higher compare to conventional loan. You should have both comparison in front of you to take right decision. If you do not own any property you can compare with Home Possible which has 5% down payment requirement.