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Mountain_Bill5743 t1_j1qxeea wrote

Reply to comment by jeanclaudevandamnnnn in Is Pawtucket the new up and coming area outside of Providence? by jeanclaudevandamnnnn

Hey OP, I see you're mentioning FHA. I would speak with an agent about your hope to use FHA and for a multifamily. FHA is a great program, but it seems like it is extremely hard to use since the pandemic (according to some friends in real estate). The competition is still there, so your offer will be much tougher of a sell against offers with 20% down. From my understanding, the multifamily market is still competitive since rents are astronomical here. It doesn't mean it can't happen, but you might want to evaluate your options.

Also, I'd do some research into FHA (if you haven't already). For example, I have friends who did a multifamily on FHA pre pandemic and this impacted their ability to refinance for a lower rate or move when their family got bigger because it was under 5 years. They're doing well, but it does have some conditions.

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ForTheLoveOfAudio t1_j1sgxoa wrote

Interestingly, we opted to do a conventional loan, in spite of our eligibility. We believe this saved us when we had our home inspection, because our inspector had found knob-and-tube wiring. From what I understand, people going for a FHA loan can't even bid on a house with knob-and-tube until it's been abated.

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Mountain_Bill5743 t1_j1tdr0i wrote

Unfortunately, many of the best FHA options (most likely to choose FHA) are probably the least able to qualify for the conditions of the loans. I assume the less problematic properties are still going to the stronger offers. I have friends who had similar challenges with VA loans in 2020, though, I think it's great both programs try to avoid financing possible money pits.

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jeanclaudevandamnnnn OP t1_j1r01ox wrote

thanks. i am starting the research process now and plan on talking to someone by summer. i have heard that is it not easy to compete with cash offers/ bigger down payments. hopefully there is something out there for me!

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Mountain_Bill5743 t1_j1ra7dk wrote

I would encourage you to talk to someone sooner (and be honest about your intentions of just browsing at this point). For example, if FHA is a non-starter you'll want to know as soon as possible because you will need to be saving for a better down payment. Realtors who know the area closely should be able to give you an idea of where you'd have the best shot of FHA for your desired size and budget (or if its even a possibility).

Maybe reach out to Rhode Island HUD as I think they offer free counseling on this kind of thing.

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