First Purchase Loan Type

[Hunter Hassebrock]

Hi Everyone,

My name is Hunter and I am relatively new to the BP Community. I have been reading the UBG and forums, and listening to the podcasts while gearing up for my first purchase. I am interested in investing in buy-and-hold rental properties in Houston, Texas. 

For my first deal, I would like to purchase a multi-family (likely a duplex) and house-hack. I have read and heard a lot about FHA loans across BP. The advantage is obviously a low downpayment (3.5%). However, I have been researching "Home Ready" and "Home Possible" mortgages. These are conventional loans that allow 3% down (5% for multi-family), and don't require mortgage insurance for the entirety of the loan like an FHA would.

I'd like to get some feedback on these different loan types, as I haven't seen them discussed much on BP. Are there any red flags I'm missing if I don't go with an FHA? Has anyone had a "Home Ready" or "Home Possible" mortgage that can provide feedback? Any other tips or things to look out for on my first deal?

Thanks in advance for the feedback, I look forward to discussing.