All Forum Posts by: Jamie Cianfarani

Quote from @Eric James:

Didn't you have a financing addendum stipulating your offer (and earnest money) are conditional on being approved for a mortgage with 5% down? Those addendums are to save your earnest money in the case you don't get approved.

Thanks Eric, you’re right, I didn’t realize this was the case.  The offer states “Purchaser agrees that in connections with said application to lender he/she shall promptly comply with lender’s request for necessary information required to process the loan application. If a commitment for such mortgage cannot be obtained within __2_1___ days from date of acceptance, at the Seller’s option, this Offer can be declared null and void and Ernest Money Deposit shall be returned. Should Seller wish to exercise this option, Seller must do so in writing. It is further agreed that said written notice may be hand delivered, electronic delivery and/or mailed to Purchaser's real estate agent.”

I didn't mention that I plan on making the new house the primary residence, thinking I would only need 5% down.  Understand it is different for multi-family but not new requirement

Good morning, looking for advice on how to hand the following situation:

We're currently residing in a single family house that we'd like to rent. I was pre-approved for a conventional mortgage and found a 2-unit house that we liked. My mortgage broker told me I qualified very well for conventional, so my real estate agent and I moved forward with the offer at 5% down conventional. A week after making the offer, the broker e-mailed stating that he just found out that I'd be required to put 15-20% down for a conventional mortgage, not 5%. Because of this I'd be required to use FHA if I wanted to keep 5%. We re-wrote the offer and it was accepted.

We're supposed to close at end of May. Late last week, the broker told me that it is also a requirement to have a signed tenant lease agreement in place for the current house I'm residing in, as well as a down payment and security deposit paid. It's getting to the point that if I had known these things I would've reconsidered making the offer in the first place, worried about losing the earnest money deposit if we can't close. The broker went from 99% confidence (their words), to this is going to be difficult (also their words) within a few weeks. I have great credit and good DTI ratio to be approved for both houses at the same time, so that doesn't seem to be the issue. Looking for advice on next steps. Thank you

Good morning, I'm working on buying a second home (currently 2-unit), and renting out the single family house I purchased last year. The mortgage broker found that just recently, maybe around the end of March '23, that you can no longer put only 5% down on a multi-family using a conventional mortgage, and I'm required to use FHA, which also requires having a renter in place before I moved, letter of explanation, etc.

Is anyone else running into this?  I'm planning to occupy the entire house, both units, so I wonder if I could buy it as a single family?  Thank you