All Forum Posts by: Aaron Wakeman

@Blair F. I appreciate the response! 

@Chris Mason Thanks anyway. 

@Melvin List I'm all ears! Would you mind sharing a few so I can do some research? Thanks for chiming in.

@Eric James thanks for that answer, and for the question. I guess I'm weighing the two options now. Say I can get FHA financing and put down $10K instead of $50K (using round numbers). Would it be wiser to roll the $40K into another investment, like another rental property? The cost of that choice is essentially an additional 1% of the total loan (PMI), but the potential returns on another cash flowing property would outweigh that.

What am I missing? Feel free to poke holes in my logic. 

Hi BP community, I've been listening to podcasts and reading voraciously. Thanks for providing such a great resource.

I'm struggling to find a clear answer on this question even though I think the answer should be pretty straightforward. I own a townhome with conventional financing. (I put 20% down on a 30-year fixed loan four years ago, and the property has appreciated in value). My family has outgrown it and we are looking to purchase a new place that we would move into. We would prefer to keep the townhome as a rental (our HOA does allow rentals).

Can I qualify for a low-money-down FHA loan on my new (second) home?

Follow-up question then, if I do qualify: is this option the preferable one? I would pay PMI. The other option is to put a full 20% down but maybe I would prefer to keep the cash flexible to leverage elsewhere.

Thanks in advance for sharing your wisdom. :)