Rental Property Investor · Dallas · Member since 2016 · 33 posts · 13 votes
9y
It depends on the size of the deal, however, if the loan is over a million or better yet five there are numerous national lenders, such as Life Companies that can provide loans at the rates that are more competitive than local banks, because of their own book or producing multifamily loans being backed by FHA, Fannie and Freddie Mac.
Rental Property Investor · Treasure Coast, FL · Member since 2016 · 23 posts · 13 votes
9y
Preferably a 4-plex, possibly 3 or 2. I may or may not occupy on unit depending of cash on cash and other considerations. I'm looking for buy and hold or buy fix and hold. I'd like to stay below $300,000 with 20% down and something north of the one percent rule. I currently have rentals in northwestern Washington and in Palm Beach County, Florida; both states have no state income tax.
Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
9y
@Al Anderson your best bet is an FHA loan for 3.5% down as owner occupied. I would plan to live there the minimum required time of 1 year, however they do allow for shorter time frames in extenuating circumstances?
This will give you the lowest down payment of any loan out there for 1-4 units and then you can always refinance it to a Fannie / Freddie without MI down the road, once you have enough equity. You can also use an FHA 203K or 203K streamlined if some repairs or rehab is needed? It is still 3.5% down payment of the purchase price plus repair costs, so the best deal available. If you do end up doing repairs, you might be able to refinance earlier because you may have built up equity through the repairs or rehab. This just lowers your payment and helps you cash flow even better. I hope this helps.
Keep in mind that 1-4 family is residential lending and 5 units and above is commercial lending.