So it's my first time purchasing a place and I have found a perfect 4-plex for a wonderful price. One lender is saying I need to have 25% down in order to buy it but I am looking to live in the house as well. Is there a way to get around the 25% downpayment? All advice would help tremendously!
What are you needing help with?
Wow, I guess it didn't post...
I am looking at buying a 4plex and living in one of the units. One lender said it had to be 25% down for me to get the property... If I'm living there and the other 3 units are rented out is there a way to get a downpayment of 3.5%?
If you get an FHA loan (owner occupied only) you can put down as little as 3.5%, the 25% is for when it is only an investment and you won't be living there.
I tried explaining to the lender that I would be living there but he said that it didn't make a difference. Am I only allowed to get the 3.5% down rate with an FHA loan?
I'd be Shopping for another lender. I'm sure this is possible.
You need to find a new lender. Your current one is misinforming you.
So you all are saying that there is a way to get a 3.5% downpayment rate for a 4plex since I will be occupying one of the units?? Because quickenloans didn't think so..
Yes, this is a very common strategy. FHA 3.5% down can be done on 1-4 unit properties. There are probably additional guidelines that are preventing that particular lender from giving a 3.5% loan on a 4-plex. Shop around, there is bound to be one that can do what you're looking for.
IMHO that lender is not really interested in working with you, or they do not specialize in the type of loan you are look for and have limits on their lending requirements. You are just starting out and as you get more experience, you will find not all lenders are the same in how they treat a potential customer. I treat the process like interviewing for an employee. Ones who are eager and flexible, are the types of you want to work (hire) with. Would you really hire employee who makes demands?
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Find a mortgage broker, a good one will get what you need since they can shop around for you. If you want a quick run down check it out here.
go on the HUD website. They have a list of all the approved FHA lenders in your area.
If its a 4 plex its consider residential and if your going to be living in one the units then you can definitely get an FHA Loans. Check out this web site or just google FHA Loans
I hope this helps you. Also like everyone else said if your lender said you cant do it then move on try someone else.