I need help finding a loan for a triplex in NY

6 Replies

Hello all I am new here. I am currently in contract for a triplex located in NY. I am in a bind right now trying to get a loan for the property. The purchase price is $765,000 and I currently have 6% down in escrow. I originally was going with a FHA loan and have been mislead from the lender I was working with about the FHA self sufficiency test, and I am now worried about the property not meeting the requirements and being denied. 1 unit is currently being rented for $1300 (way under market value) and the other at $2300. Both rent incomes are written in the contract. My monthly mortgage payment with PITI is roughly around $5200 per month. My question is does anyone have any advice in regards to this test or a back up option for a different route I can go for a loan with a different lender that I would qualify? I will be house hacking making this my primary residences. Thank you

Originally posted by @Vincent Tempesta :

Hello all I am new here. I am currently in contract for a triplex located in NY. I am in a bind right now trying to get a loan for the property. The purchase price is $765,000 and I currently have 6% down in escrow. I originally was going with a FHA loan and have been mislead from the lender I was working with about the FHA self sufficiency test, and I am now worried about the property not meeting the requirements and being denied. 1 unit is currently being rented for $1300 (way under market value) and the other at $2300. Both rent incomes are written in the contract. My monthly mortgage payment with PITI is roughly around $5200 per month. My question is does anyone have any advice in regards to this test or a back up option for a different route I can go for a loan with a different lender that I would qualify? I will be house hacking making this my primary residences. Thank you

Based on your numbers you're at 3.6K currently but you haven't included the unit that you're going to live in. Then take those 3 numbers and multiply by 85% (FHA takes 85% of leases) and if that number is bigger than 5.2K you're good on that front.

I have a feeling that you might just be ok, but it will be close.  You can also put down more money if you have it to bring down your monthly mortgage payment.

Keep us posted on this thread as to how this all goes down.


Originally posted by @Shaun Weekes :
Originally posted by @Vincent Tempesta:

Hello all I am new here. I am currently in contract for a triplex located in NY. I am in a bind right now trying to get a loan for the property. The purchase price is $765,000 and I currently have 6% down in escrow. I originally was going with a FHA loan and have been mislead from the lender I was working with about the FHA self sufficiency test, and I am now worried about the property not meeting the requirements and being denied. 1 unit is currently being rented for $1300 (way under market value) and the other at $2300. Both rent incomes are written in the contract. My monthly mortgage payment with PITI is roughly around $5200 per month. My question is does anyone have any advice in regards to this test or a back up option for a different route I can go for a loan with a different lender that I would qualify? I will be house hacking making this my primary residences. Thank you

Based on your numbers you're at 3.6K currently but you haven't included the unit that you're going to live in. Then take those 3 numbers and multiply by 85% (FHA takes 85% of leases) and if that number is bigger than 5.2K you're good on that front.

I have a feeling that you might just be ok, but it will be close.  You can also put down more money if you have it to bring down your monthly mortgage payment.

Keep us posted on this thread as to how this all goes down.

Thanks for the reply, from the information I received after speaking with multiple loan officers they told me FHA deducts 25% of the total current rental income included fair market value of the unit I would be occupying? Are you sure it is 15% of the current lease? The unit I would be occupying has a estimated rental income of $1900.

 

Originally posted by @Vincent Tempesta :
Originally posted by @Shaun Weekes:
Originally posted by @Vincent Tempesta:

Hello all I am new here. I am currently in contract for a triplex located in NY. I am in a bind right now trying to get a loan for the property. The purchase price is $765,000 and I currently have 6% down in escrow. I originally was going with a FHA loan and have been mislead from the lender I was working with about the FHA self sufficiency test, and I am now worried about the property not meeting the requirements and being denied. 1 unit is currently being rented for $1300 (way under market value) and the other at $2300. Both rent incomes are written in the contract. My monthly mortgage payment with PITI is roughly around $5200 per month. My question is does anyone have any advice in regards to this test or a back up option for a different route I can go for a loan with a different lender that I would qualify? I will be house hacking making this my primary residences. Thank you

Based on your numbers you're at 3.6K currently but you haven't included the unit that you're going to live in. Then take those 3 numbers and multiply by 85% (FHA takes 85% of leases) and if that number is bigger than 5.2K you're good on that front.

I have a feeling that you might just be ok, but it will be close.  You can also put down more money if you have it to bring down your monthly mortgage payment.

Keep us posted on this thread as to how this all goes down.

Thanks for the reply, from the information I received after speaking with multiple loan officers they told me FHA deducts 25% of the total current rental income included fair market value of the unit I would be occupying? Are you sure it is 15% of the current lease? The unit I would be occupying has a estimated rental income of $1900.

75% per the seller guide  Sorry about that. 

 

Originally posted by @Vincent Tempesta :

@Shaun Weekes

No problem. So what is my best option in this scenario? Try to go for FHA or is there another loan out there I could possibility qualify out there with these conditions?

 Do you have access to additional down payment funds or can a relative " Gift you " any cash to help with additional down payment funds?

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