The typical House Hacker will purchase a property with a down payment of 3-5% in most cases. While these lower down payments may include mortgage insurance, the mortgage insurance will eventually drop off as equity is gained in the property. 

Loan Term

The majority of investors prefer to do a 30-year loan term at a fixed rate to increase cash flow and spread the leverage out as much as possible.

Loan Type

The most commonly used loan types for House Hackers are either FHA, Conventional, or VA loans.

FHA loans are the most talked about with a 3.5% down payment, friendly terms for low credit score borrowers, and low-interest rates. While FHA may have low interest rates, these are often offset by a higher mortgage insurance which can make them unfriendly in some scenarios. The other negative is this mortgage insurance in most cases will exist for the life of the loan.

Conventional loans are the most common and often underutilized loan by House Hackers. These loans in most cases will range from a 3-5% down payment. They offer friendly interest rates, and with better credit scores, also offer much lower mortgage insurance to a comparable FHA loan. Extra bonuses - you can use Conventional loans over and over, and the mortgage insurance will automatically drop off just past 20% equity.

A VA loan is likely the best House Hacker loan available, but it is reserved for those who have made a stronger commitment. This loan is reserved for those who have served in the military and a few other special cases. These loans offer very friendly interest rates, a possibility of a 0% down payment, and no mortgage insurance. As with any other loan the better your credit score, the better terms you will be offered.

Interest Rate

This rate is based on the current average our clients are receiving. 

Property Tax Rate

This rate is a good average to expect for most properties in Colorado.

Home Insurance

Home insurance or homeowners insurance is typically required by lenders. The default value in the calculator is an average of what our clients pay.

HOA Fees

A homeowners association fee (HOA fee) is an amount of money that must be paid monthly by owners of certain types of residential properties, and HOAs collect these fees to assist with maintaining and improving properties in the association. This fee will be listed within each property's details if there is an HOA.