House Hacking in North Denver \ Boulder area.

[Mathew Fuller]

Hello,

I'm new to the home buying process, and  currently looking to buy a home to house hack in the general north Denver \ Boulder area (Erie, Broomfield, Westminister, Longmont, Arvada). I am approved for 450k for metro loan, and 400k for conventional, and looking for 4-5 bed room homes. However, I am debating if I should go with the no money down metroDPA loan, that carries a 5.5-6% interest rate, or the 3.5% down conventional that is rated at 4.5-4.7%. My goal is to rent out all the rooms except for my own, and have that cover my mortgage. What's attractive about the no money down is that the money I have saved I can use that for cushion. As of right now if I put a 3.5% down payment, it would eat up all my savings, which I know isn't smart. I am hesitant to wait until I can do a 3.5% down payment without running me dry, but I don't want to miss out on potential appreciation \ cash flow opportunity. Also, looking at posts on Craiglist for rooms, I feel fairly confident I could cover most of the mortgage and some, even with the metro no money down loan, although metro loan would leave me with less money to pocket.

My goal is to rent out my rooms and have my mortgage paid for, or most of it paid for. I am just worried about making a catastrophic mistake, either be jumping in too early or jumping in too late. 

Thoughts? And thank you very much for your time.