Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
9y
@Dan Hoehn if you are not occupying the property the Fannie Mae/Freddie Mac minimum down payment requirement on a 2-4 unit property is 25% down. If you occupy the property the minimum is 15% down. A bank is allowed to be more strict than this (so 30% down if they wanted to require it) but they are not allowed to be less strict. The alternative here would be to use a "portfolio" loan. A portfolio loan falls outside of the Fannie/Freddie guidelines because it's terms come from the bank itself. It is money from the bank's portfolio of money...thus the name. However, if you find a portfolio loan that does allow 20% down then you will pay a difference in the rate being higher, or the rate might be adjustable, or it might be a shorter term (which will make your payment higher) and sometimes it's all three of these features. This may not be what you want to hear but it's the right information to have. If you have more questions feel free to ask. Thanks!
Buffalo, NY · Member since 2017 · 62 posts · 56 votes
9y
@Brent Coombs good news is I spoke with my girlfriend and she would be ok with refinancing our mortgage in only her name.
I still need to figure out which type of loan would less picky with the home inspection, like I said the 3rd zone needs a ton of restoration and I'm not sure if it's even liveable.
I would also want to do all the work myself rather than doing a 203k loan. I'm real handy and would like to slowly repair things.
Professional · Roseville, CA · Member since 2017 · 174 posts · 31 votes
9y
theres a loan program for multifamily offering that super cheap as long as one unit is occupied by the owner. You mentioned that theres quite a bit of rehab needed. If you lived a unit while rehabbing it you would qualify for the fha loan. Just a thought
theres a loan program for multifamily offering that super cheap as long as one unit is occupied by the owner. You mentioned that theres quite a bit of rehab needed. If you lived a unit while rehabbing it you would qualify for the fha loan. Just a thought
That's exactly what I want to do, but I don't want to do a 203K type loan because I want to do the work myself, and I'd like to keep the place able to pay for itself. If I took out a mortgage on the cost of the house and 30k for repairs, the current rent in the place would probably not pay for the mortgage and taxes.
In reality I would like to occupy the property for the minimal 1 year and then live with my girlfriend, obviously still traveling to the MFH to continue to work on it and repair it.
Professional · Roseville, CA · Member since 2017 · 174 posts · 31 votes
9y
I'm pretty sure theres and fha loan program that allows you to live in one of the units and do the work yourself. I'm not sure what the title of the loan is called. But if you call the national information clearing house in DC they know just about everything there is to know and if they don't by gosh they sure know who to send you to. Also I'm not sure if theres a rural part of Buffalo but if there is you can also speak to rural housing authority. They have a lot of low interest loans available as well. I'll look over some of my notes and see if I can find the number of the loan I was talking about.
@Brent Coombs good news is I spoke with my girlfriend and she would be ok with refinancing our mortgage in only her name.
I still need to figure out which type of loan would less picky with the home inspection, like I said the 3rd zone needs a ton of restoration and I'm not sure if it's even liveable.
I would also want to do all the work myself rather than doing a 203k loan. I'm real handy and would like to slowly repair things.
Well, you're certainly entitled to ignore my recommendation. (Otherwise, why refi into one name?)
ie. You AND her are allowed to already own investment property, AND apply for a fresh FHA loan...
Buffalo, NY · Member since 2017 · 62 posts · 56 votes
9y
@Brent Coombs I apologize I'm not trying to ignore anyone's recommendations. I'm just trying to wrap my head around everything I've been researching without confusing myself.
I do appreciate all the people helping with my questions.
It's a complicated situation I'm getting myself into.