Hey there! Does anyone know the minimum and maximum amounts that an FHA and Conventional loan would approve for the purchase of an owner occupied duplex home in Harris County in Houston, Texas?
@Erica Hutchinson you should be able to Google Fannie / Freddie conforming loan limits and look up your specific county. I believe it is $702K for a duplex, but I'd double check with local lender in your area.
Thank you, I'll be sure to do some more googling. Would you happen to know the FHA limit too? When I searched it said 450k for a duplex, is that accurate?
Hey Erica, it's $456,275 for an FHA duplex. For a conventional duplex it's $702K. Remember, that is the loan limit, not the purchase price. So the purchase can be above those amounts and as long as you put enough down payment to meet the maximum loan amount, you should be fine. As far as a minimum loan limit, that depends on the lender. I think most lenders don't go below 30K.
Thank you so much, I'll be sure to keep that in mind! I'm still in the research phase, so all of this is beyond helpful!
@Erica Hutchinson - Talk to a local lender ASAP
Thank guys, I'm really seeing the picture! Hypothetically, if I aimed to get the max FHA loan amount for a duplex, 450k, would I be able to get approved for that amount by only contributing the minimum 3.5% down payment? Or is there an even higher minimum down payment percentage for the maximum loan amount?
As a primary residence, then yes, you could qualify for 3.5% down, but must live in the property for at least 12 months.
FHA rates and terms are typically better. Both Conventional and FHA will come with Mortgage Insurance if you don't come in with 20% down, FHA you will have MI for the entire life of the loan no matter how much you put down or pay off. The advantage with Conventional is you could get in with only 3% down and are not stuck with MI forever...
Your down payments are 3.5% for FHA. Assuming owner occupied on a conventional loan, its 15% down payment.
Yes the property will be owner occupied for at least 2 years. If by some miracle I could get approved for a high FHA loan amount, a 3.5% down payment sounds good to me. I read that if I put 10% down, I would only have to pay MIP for 11years. Is that accurate?