FHA/ Mortgage Banker NY
Hi everyone, I'm a newbie; trying to work on my first property with a buy & hold strategy, looking for a 3 unit multi-family, I've been doing my homework on FHA loans. I already have a preapproval from The Federal Saving Bank; they approved me a $290,000 loan. But the preapproval letter says:
Sales price: 290.000
Loan amount: 279,850
Financing Percentage: 96.5 FHA
Does that means: a) besides financing the 96.5% of the total cost of the propertie, they approved a loan of $290,000 or b) My FHA loan is limited to 290,000 and I have to come with the remaning amount of the total cost of the propertie? The price of a tripex house is way more higher than that here in the Bronx, should I try something else?
Any suggestions, advices, warnings, recommendations... would be greatly appreciated.
Thanks in advance
Arionnys
Most Popular Reply
The way they have it worded is that the max purchase price will be 290k. It will be extremely difficult to get any property in the Bronx for under that. You should double check with local lenders and smaller banks to see if they have more flexibility and allow more debt to income. Average to family is going to cost about 500k and 600k+ easy for a 3 family. If you have any questions feel free to ask. Good luck!