FHA 3 unit 3.5% down Owner Occupied

[Lexi Oswald]

I am interested in purchasing the property that I live in. It is a 3 unit valued at around 260k to 300k. The units rent for $950 with long term tenants (5+ years). I think we all stay because our rent is well below current market. One bedrooms go for 1200-1400 around here.

I would like to ask the landlord for 6% sellers assist on a FHA 3.5% loan. The 6% SA will cover all of my downpayment fees. Plus a 1st time home buyer grant will pay for almost all of the FHA 3.5% requirement.

For anyone more familiar with this process, does this sound accurate? If you are a landlord would the 6% SA request be a turn down?  

[Joaquin Camarasa]

If you are doing FHA 3.5% down or conventional 3% down. The maximum seller assist you will be able to get is 3% and that will go towards your closing costs not your downpayment. I think you might have meant that with your "downpayment fees" but not sure.

As of right now the market remains competitive, your landlord will probably know that if he/she puts in the market they will get an offer with no seller assist as you call it. It depends on the personal relationship you might have with the landlord as well. It seems you have been a tenant for quite a while. Talk to him and see how you can negotiate so it is a win win for both parties. 

[Vanessa Ng]

Hi Lexi,

You can only get 6% concessions on FHA. Please note the 6% can only goes towards your pre-paids and closing costs and NOT your 3.5% down payment. The FHA 3.5% down payment must come from your own funds OR gift funds. Let me know if you have any additional questions.