Rental Property Investor · Milwaukee, WI · Member since 2021 · 16 posts · 3 votes
Hello,
I am looking to use an FHA on a duplex and am going to need a co-borrower as I just have 1 year of 1099 income to show. My lender I have been working with says an FHA loan on a Duplex using a co-borrower requires 25% down. Only singles family homes as eligible for 3.5% down with a co-borrower. I have never heard of this and was wondering if anyone has worked around it or can suggest anything.
With all do respect to that lender, they are either misinformed or their company doesn't offer the product you need. All 1-4 properties that will be inhabited by the owner can go for 3.5% down with FHA. As far as not having enough job history, by any chance did you recently exit college or the military because if so we can overlook the short job history.
Rental Property Investor · Milwaukee, WI · Member since 2021 · 16 posts · 3 votes
4y
@Tsipora Smith hello and thank you for your response. I’m currently in college and will be graduating this May. I’m currently working a 1099 income job and have had a W2 job in the past.
The plan was for one of my parents to cosign if needed with the short income history.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
4y
@Andy Kornacki@Tsipora Smith The lender is Exactly correct....for FHA, when using a non occupying, non family coborrower, the down payment is 25%. Using a Family Member non occupying coborrower, you can still get the 3.5% down fha.