first-time home buyer

[Sandra Diaz]

Hi All,

I've listened to several bigger pocket podcast and love them!  

I'm considering purchasing a two family house in Cypress Hill's area in Brooklyn, NY 11208 and am planning to rent one apartment We are approved for an FHA loan with 3.5% down however it includes an Upfront mortgage insurance and a monthly PMI so the APR will be 4.6%. Don't know what the APR will be without these fees but the interest is 3.75%. We can possibly come up with 15%-20% down to avoid these charges by borrowing money from my 401K this way I pay interest to myself instead of someone else. The house is $480k but after 30 year fixed interest interest/fees, it would be $800K plus. The house is fully renovated in move in condition. Would this be a good investment? Any advise would be greatly appreciated. Please feel free to ask questions.

Thank you.

Sandra

First-time home buyer.