Property # 2 Financing Falling Through
Hey everyone,
I am under contract and nearing my closing date when I get a call from my banker saying that I do not qualify for the loan program we are applying for. We had made it to underwriting after which they noticed a particular guideline that was very much overlooked. The freddie mac program allows for only 5% down on a multi family property as long as you do not own a first home. The reason I do not qualify is freddie mac is considering my first purchase a rental duplex, as my first home. The property was never lived in and semantics is what is keeping them from investing on the second property at only 5% down. You would still qualify for 5% down on a single family, just not on a multi family type unit. Well that doe not help me on this deal.
Since receiving this new information I have not had time to shop around. I was planning on purchasing this duplex and occupying one side as my primary residence, but the increase in down payment is clouding the opportunity.
Do you have any ideas how to move forward with this deal at 5% down with a 3.5% interest, 30 year fixed :)
If you are reading this and you are newbie, LEARN from my mistake and take advantage of a loan program like this BEFORE making any other investment purchases.
