Dallas, TX · Member since 2016 · 74 posts · 16 votes
Hey everyone, I am looking to purchase a duplex in the Dallas area and I am wanting to get a FHA loan to finance it. What are your thoughts on FHA loans ???? And does anyone have any awesome recommendations on a great lender that's offers them???? Please give me some insight, thanks everyone ! :)
Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
10y
They are the best for low down payment of multis you are going to live in. Pmi is for life. But good news you only have to live there for one year. I think conventional is 15% down on multis even if you live there.
Good luck
Real Estate Agent · Allen, TX · Member since 2015 · 106 posts · 13 votes
10y
FHA only require 3.5% down with the requirement of purchasing it as a intend to use the property as primary residence. Feel free to contact me for lender recommendations. PMI will applied for at least 5 years or 78% LTV ratio. Let me know if you need help finding a duplex.
Dallas, TX · Member since 2016 · 74 posts · 16 votes
10y
@Gary Wong Thanks for the great tips buddy, and Yes im currently looking for a real estate agent to help me find a duplex. Just let me know if you are interested. Thanks
Urbana, IL · Member since 2012 · 1k+ posts · 425 votes
10y
If you're doing a duplex they will likely want to see that you've got 6 months of reserve rent incase you lose your other renters. Although the FHA is quite a good program is has become so strict in its guidelines that its hard to find an ideal investment property. For example, they require that xy and z are in good working order and working order is quite specific and strict. Peeling paint in a bathroom might not pass the approval process in some circumstances.
Lima, OH · Member since 2015 · 27 posts · 10 votes
10y
Great way to get started! It's actually the route I'm going to be heading down. It's recommended by plenty of REI gurus as a beginner's first steps. FHA to house-hack a multi!
Real Estate Agent · Willoughby, OH · Member since 2014 · 560 posts · 690 votes
10y
@Lilia Andrew There is not a maximum limit on your income. @Gary Wong There is a minimum however. Your debt to income ratio must be less than 36% front end or 43% back end. This means that the house payment alone cannot be greater than 36% of your gross income (before taxes) AND the house payment plus all other monthly debts (with greater than 10 months of payments remaining) cannot be greater than 43% of your gross income. Gross income can include alimony, child support, royalties, etc. These ratios can be bent slightly if the bank sees that you have a large amount of reserves and/or high credit score.
Real Estate Agent · Willoughby, OH · Member since 2014 · 560 posts · 690 votes
10y
Also @Gary Wong the PMI will no longer automatically drop from an FHA loan at 78% and 5 years. It is now for life unless you refinance into a conventional loan.
Real Estate Agent · Lowell, OR · Member since 2016 · 33 posts · 11 votes
10y
@Gary Wong I guess I will have to do more research on loans...so what is smart to do with a pre-approval of $750,000 loan (conventional or FHA?) Any ideas of investing I should do...or just go buy something? I am learning that if I want to do foreclosures I have to have ALL cash...correct?