All Forum Posts by: Michael Cohen

You're looking for an FHA 223(f) Multifamily Housing loan: https://www.hud.gov/program_offices/housing/mfh/progdesc/purchrefi223f

Harjeet is correct; I brain-farted on Home Possible!

Assuming you are selling your FHA-financed home, yes you can buy again with FHA. It will be a sales-contingent offer. Pretty simple/common transaction; find a local realtor and lender to guide you through the process.

Good luck!

FHA for an owner-occupied is 3.5% down on 1-4 units. On a duplex, FannieMae is 85% LTV and FreddieMac is 80%.

My guess is that Summit Funding has overlays - additional rules over and above the guidelines in order to lower their risk.

@Pedro Ramos - go talk to a local lender. they will be the best source of various programs you may be eligible for.

Hi @Sheila Reyes - no, the loan to value on HomeReady is 85% (meaning you must come up with the remaining 15% as down payment) on 2-4 unit properties, whereas Home Possible remains 95% for 1-4 units. 

@Anthony D. FHA won't block your application, the mortgage company's underwriter probably wouldn't even submit it. So don't worry about Fannie/Freddie (conventional) seeing that FHA "blocked" an application; it doesn't work like that. While you would technically be able to get a conventional loan if you're not eligible for an FHA loan, FHA loans are significantly more lenient. I can't think of a scenario where a borrower would be eligible for a conventional loan, but not FHA for some reason.

Here's a decent chart that lays out the "seasoning" period after major derogatories.

Yes, you are expected to live in the property for a minimum of 12 months. If you are looking solely at an investment property, you'd be looking at 15% down or 10% down for a vacation/second home for a FannieMae conventional loan.

@Mike Rueffer an FHA loan - and all low down payment loans that assume it's an owner-occupied primary residence - require occupancy within 60 days.

Since it's a duplex (2-unit) he wouldn't be eligible for 5% down conventional. Max LTV on a 2-unit FannieMae is 85% - meaning 15% down minimum. Freddie Mac is 80%/20%