Hartford CT · Member since 2020 · 2 posts · 2 votes
There's a new duplex listing coming soon on Zillow and it already has racked up a ton of Saves. This would be my first property and it is in my ideal neighborhood, where i know It can cashflow if rented at the comps. I'm prepared to offer 25K over asking, due to the fact that a property similar to this one but in a less desirable area went for 25k over just 2 weeks ago.
I have an agent and will ask for her help when putting together an offer. I'm pre approved for both the FHA & conventional loan.
Should i stick with an FHA loan, but look less desirable to the seller? Or should I go the conventional route and put down 20%?
I'm worried that in order to compete in this market for a property like this I'll have to waive inspections, or mortgage.
Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes
3y
Your lender should have informed you that if you are planning on living in the property as a primary address, you do NOT need to put down 20% for a conventional. You can do as little as 3% for a conventional. Also, I would recommend the Conventional if you can qualify for it. That will save you a plethora of closing costs.
Lender · Saddle Brook, NJ · Member since 2023 · 431 posts · 231 votes
3y
Your lender should have informed you that if you are planning on living in the property as a primary address, you do NOT need to put down 20% for a conventional. You can do as little as 3% for a conventional. Also, I would recommend the Conventional if you can qualify for it. That will save you a plethora of closing costs.
Meriden, CT · Member since 2018 · 702 posts · 501 votes
3y
Talk to your realtor. They are supposed to be able to give you advice.
Here's my advice as a CT based realtor, broker, and property manager. If you are in love with the property, and really want it, offer the amount that you would be happy to get it and equally happy if someone else got it paying a little bit more than you.
If it is as good as you say it is, it will go for more than the $25k above ask that you mention.
I'd be happy to talk with you more about this. Just DM me if interested.
Your lender should have informed you that if you are planning on living in the property as a primary address, you do NOT need to put down 20% for a conventional. You can do as little as 3% for a conventional. Also, I would recommend the Conventional if you can qualify for it. That will save you a plethora of closing costs.
Yes they had told me a little as 15% for a duplex that I planned on living in. A far ways off from 3%, but still better than 20%. I have great credit I’m wondering why I didn’t get offered to put down 3%.
@Ryan Gardner - What happened on this deal? You should now be able to put down 5 or 10% on a duplex/even a 3-4 unit if you plan on living in one of the units...
Real Estate Agent · Charlotte, NC · Member since 2021 · 147 posts · 150 votes
2y
@Ryan Gardner Interested to how this turned out for you! I actually just closed on duplex in Charlotte with the 5% Fannie Mae conventional loan. I would love to stay in touch to see how it goes for one another. Good luck!
Those would be great questions to ask your lender and RE broker. If they have the experience and expertise in you area, they will have recommendations.
If they are not able to guide you, find another professional that can represent your best interest and position your offer to compete and win the duplex.
Keep us posted on what happened. Since it's from 2 months ago, I'm assuming you already got it or didn't get it. If the home has tons of saves and attention in coming soon, I'm guessing it had a bidding war/best offer scenario, I usually pull up cma or offer my advice for clients what a strong offer would be. After being on both sides of listing agent and buyer's agent, it's so true that highest price is not always the best offer! In case you're in the same situation again, it always helps if your realtor have a conversation with listing agent to understand what the seller's priority is and what is important for them; it'll help make your offer stronger.
Investor · Stamford, CT · Member since 2011 · 52 posts · 20 votes
2y
Hi Ryan, I understand what your going through. I am located in lower Fairfield County and the FHA or low down payment conventional loans do not get much traction with the amount cash investors have in this market. There is very little inventory and the demand is very high. Great that you have a few different options. It looks to me like you should get a savvy investor friendly lender. There are a couple strategies to have your offer be very attractive and still be able to use your lower down payment loan. Feel free to DM for a contact.