Investor · Gardena, CA · Member since 2016 · 5 posts · 1 vote
Calling all local realestate lenders and pros. to the LA area!
I was interested in purchasing a triplex and my realestate agent told me that there is a new law for 3 & 4plex's. That states that with 25% vacancy. the other rentals must be able to cover the remaining mortgage this is even if i were to occupy one of the units on a FHA purchase.
Does anyone know about this and can you provide me some clarification on this or if you know a lender that has a way to work around this please let me know. Any advice is appreciated. thanks guys!
There is no “law” about this....it is an underwriting guideline to qualify for a loan. Simply talk Directly to a lender in your area. The “75% of rents to cover the mortgage” is for a non owner occupied investment property. Conventional loans and fha loans will have different criteria. Again, don’t ask us, ask an actual lender, if you want an accurate answer to the different options.