Updated almost 6 years ago on . Most recent reply
Low DP options for a $1.5M home in the Bay Area to househack!
Hi BP Fam,
Just wondering if anyone can help send me the right direction.
I'm ready to make my next home my primary residence to qualify for low DP programs (ideally 0% DP). I've heard that some programs have a price limit but don't know if $1.5M is pushing it. I would like to get an 80/20 loan to avoid paying mortgage insurance.
I have been told that if I have a signed lease and DP then the lender will count 75% of the rent towards my monthly income. I've already played with the numbers and know that this property will cash flow even if rents drop in the Bay Area. Plus, my family will be living with me so that already covers some of the mortgage. I'm ready to househack my way to financial freedom.
I would love to connect if anyone is in the Bay Area!
Also- YAY, this is my first post!
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#1 Starting Out Contributor
- Flipper/Rehabber
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Hi @Isamar Ochoa you said you're looking for a low down payment program, but also that you don't want to pay PMI. In many programs with lower down payments, you will pay PMI. Or did you mean you have another source of funds for the down payment, like a gift from family? I applaud your decision to dive in, but (forgive me for stating the obvious) you'll tie up a lot of cash if you put 20% down on a property >$1M. Let me know if I am not understanding your plan correctly =-)