-I have a multi unit under contract (1 duplex and another unit that is a different building)
-Closing date is April 30 so time is of the essence
-I am planning to house hack so I would like to finance with a primary loan (hopefully 10% down but everyone is telling me 20% which I can do)
-This is my first time getting a property under contract so any and all advice is appreciated!!
I was working with a mortgage broker and an appraiser has deemed the property a "multi-unit property with accessory units" in the back which Fannie Mae doesn’t allow. That financing has fell through. So now I am reaching out to local banks in the area. As of now I am getting quotes from two. Does anyone have any advice? Is the financing that I am looking for obtainable?
I see the Accessory dwelling unit disqualifies a Multifamily property from being able to receive a Fannie Mae backed loan, but there shouldn't be an issue receiving a traditional loan. Especially if you can afford the 20%. Have you checked into some local credit unions? Are you worried they might require 25% down since it will be considered an investment property?
Yes, so I am trying to finance it as a primary (would do investment if I had to). But 20% is the most I can do and be comfortable financially. I am working with two local banks and will continue to reach out to a few more as well.
I will also call some local credit unions today, thank you for that new idea!
Where is the Property located? In PA there are two local credit unions that seem to be good to work with.
1. First Commonwealth Federal Credit Union
2. People First Federal Credit Union.
It is in Kunkletown. Unfortunately I just spoke with them and they base a lot of their loans off of Fannie May. They do make some exceptions but only to credit union members (not to a brand new member like me joining for the exception). The plan for now is to find some local banks and see what we can come up with from there.
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