I'm looking into buying my gramothers duplex. They're is three parties tied to the property. One being my father. Who is giving me his 3rd. So I'll already have equity into the property. It was appraised at $58,500. It needs some rehab done. I'm a first time homebuyer/ investor. Im just wondering what type of loan should I get for the property? I don't want to use it as my residence. Just want to rent it out. Any advice would be great. We meet with a local bank tuesday.
@Randi Lapp I would get a FHA loan if you can. If not I would just go conventional. A traditional loan will get you the best interest rate.
@Sam Teifke ,, FHA is ONLY for owner occupant, @Randi Lapp said don't want to occupy. Therefore the #1 best would to assume your father's one third and have the other 2/3, presumably relatives owner finance the remaining 2/3. It would be a nothing done deal for you.
#2 best might be non owner occupied investor mortgage with 20% down and since you are gifted 33.33%, you would get cash back at settlement, presuming that the property appraises for what you think.
So #1 is zero down, and #2 is cash back at settlment for about 13.33 (33.33% -20% down = 13.33% equity/cash back)
@David Krulac Curious - Can he acquire and live in it for a few months and then move out ? Is there some kind of time limit on the FHA restrictions ?
@Sam Teifke FHA required that the buyer live in the property as his/her full time residence for a miniumum of 1 year, after that she/he is free to move anywhere
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