Home Possible lending limits

[Mario F.]

Hello, I've recently gotten an offer accepted on a four unit property in Inglewood CA and found that financing this was a bit more difficult with 5% down.  There is a program that Freddie Mac has called Home Possible which would work in this scenario but the only problem now is the lending limit for the loan. US bank is telling me that the limit is somewhere over 800k which would be perfect, but Bay Equity is telling me that the limit is 636k so the loan might not work.  I was wondering if anyone here had any thoughts on this.  

I"m trying to buy this: 239 west hillcrest blvd Inglewood CA 90301 for 5 percent down so I can have enough for immediate renovations. 

Here is the home page for the loan. One of the pdf files mentions that the loan limit is 818k or something like that.

http://www.freddiemac.com/homepossible/

thanks!

mario

[Account Closed]

Mario - the lender is mistaken that is claiming the limit is 636k. That is the limit for a ONE UNIT property. 815k is the nationwide 4 unit loan limit for FNMA/FHLMC.

RE: your question related to 5 or 15% down, depends on how much appreciation you are forcing but renovating the property and if that's worth carrying more or less debt.  Also depends on whether the rents easily cover the payment...good luck