Beacon, NY · Member since 2016 · 11 posts · 2 votes
I've been reading horror stories of buying an FHA multifamily property in Brooklyn and the burroughs around NYC. Everything from limited amount of properties available, to brokers and agents not wanting to deal with FHA clients, to needing a "gift letter", etc. Seems pretty daunting.
My plan was to house hack a duplex or triplex in Brooklyn with my girlfriend, something around 600-800k using FHA, and use the rent income to cover the mortgage. In this market, do you think that's feasible? We have more than the required downpayment ($40k) but not enough to put down 20% for a conventional loan. Any thoughts, opinions or feedback are greatly appreciated.
@Jordan Moser@Antonio ArtusaWhat you need is to find a mortgage banker that can do a Fully Approved Loan with the address at TBD. In this scenario your loan goes through underwriting and is approved pending appraisal/inspection/title of the property. This way you can bid without a financial contingency. This is the closes you can come to a cash over without being a cash offer.
Yes, I was able to increase my qualifying income by including the rental income. The rental income was discounted, only 3/4 of the income could be used. Yes, the building already had tenants with leased expiring soon. This was a big help, since still had rental income coming in while doing rehab. Therefore, not so much of a drain financially .
I am new to BP and reading this chain. I did this 4 years ago in BK. I am in North Park Slope. A lot has changed in 4 years, but my mortgage broker was instrumental in making this happen. @Diana L. is correct, you need to find a lender that can work with Brooklyn and FHA. It may be harder now with all of the competition - I was lucky and paid asking before the building hit the market. I paid 10% down, but that was all factored into the loan and closing. I have refinanced since. Happy to pass the name along, but I am not sure he is still working on these types of loans.
Hey Jordan Moser it's definitely possible like some people on here have said its about finding the right lender. know a lender who can do conventional at even 5% down. Send me a message if interested.
@Lisandro Galvan sent you a message. I'd love to hear of a lender doing 5% down non-FHA jumbo loans on multi-families. Please get in touch with me. Thanks.
They just opened a shiny new drive thru Starbucks in Flatlands, off Kingshighway, if that aint a sign of change for this sleepy-1.5hour commute-to-manhattan-makes-you-want-to-stay-home-all-weekend-area I dont know what is.