This helps ensure you can manage payments even if the property isn't generating income right away.Given your situation, if you're aiming for an investment property and have about 3 months of PITI saved up, you're likely in a good position for a conventional loan.

You’ll be in a win-win situation.

My biggest gripe is that these differences are never discussed or talked about and most people that I read or talk to have this feeling that not filing a claim is almost always better than filing (except in total loss situations and very high dollar amount claims). 

Many of these are interest only payments until the agreed upon loan matures. ( PMLs are very adaptable to situations, markets, and costs- compared to traditional banking institutions). 

However it all depends on your situation and what look like as far as value.

I did my first fix and flip in 2020 and it was very stressful as I did not have all the people in place to make it a true success story.

However, this doesn't exclude you from FHA loans or conventional loans for a new primary residence.When you apply for pre-approval, it's important to be truthful about your situation.

Because that will make a big difference.Also, what is the existing situation with the building is it vacant or stabilized?

I honestly belief that investors should stop looking for specic catagoeries/situations of people to find houses to buy, and instead focus on motivation (regardless is their house is vacant, tax liened, foreclosure etc. etc.)Do you really care that you get a vacant house deal, or do you care that you find a high profit deal regardless whether it is a vacant house or not?

Go put your 600k in to a short term treasure bill and collect your 5% until you have educated yourself enough to know exactly what,where, and why a piece of real estate works for your specific situation.