All Forum Posts by: Upen Patel

Hi! @Lanetta GrayWelcome to BP.

@Joshua WomackYou can buy a 1-4 unit residential property using conventional, FHA or VA loans. For multifamily you have to put 25% down. If the property is already rented, then rental income can be counted for loan qualification.

@Jessica MacYes, FHA requires only 3.5% down. You can use an FHA loan to buy 1-4 unit residential property. The max loan about will increase with the # of units.

Connect with a mortgage banker and figure out how much you qualify for.

Here is how my bank handles pre-payment penalties for loans we originate. We originate in ALL 50 states and its the same for all states.

* We don't have any pre-payment penalty for any of our conventional residential loans.

* Some of the residential portfolio lenders we work with do have pre-payment penalties.

* Our commercial loans do have pre-payment penalty.

From what I have seen, I don't see pre-payment penalties for conventional residential loans. That does not mean that a lender might not do it. Once you get away from the conventional loans, into portfolio and commercial, where the lender is putting up their own money, then pre-payment penalties are very common.

The main purpose of pre-payment penalty is so the lender has the opportunity recoup the cost of the loan and make some profit. They don't charge you a high interest rate or upfront points, like hard money and private money lenders, so they need time for that.

@Russell BrazilIts the usual reasons that pass the BS test - Work relocation/new job, change in family size. And the reason needs to lineup with the new property.

A good BS reason would be "I want to move closer to my job". Hummm... I suppose they did not know 6 months back that the job was a bit far away.

@Rion ManitaI have don't simultaneous purchase loans, but the borrower was well qualified to be approved for both, most of the units were rented so I was able to give him rent credit and I did both the loans.

Don't try to sneak it by with two different lenders. You will likely get discovered. And even if you don't you are being dishonest of a financial transaction, but I believe is a Federal Offence. Mortgage Fraud.

@Jason SlaterIf you refi as a primary residence then you will need to have a good valid reason to get an another primary residence loan within 12 months. Not saying it can't happen, just that you want to be ready for the push back. Fannie/Freddie and secondary investors are pushing back big time on lenders, so now lenders like me have to push back on borrowers and verify that its a valid reason.

@Steve ZubrowskiWelcome to BP.

@Dave FosterThanks for correcting me. I knew I was missing some aspect the the tax break.

Yes, FHA 3.5% is a very viable option for a 1-4 unit residential purchase as long as one of the units is owner occupied.

@Levi HoftsThank you for your service.

With regards to financing, have you thought about using your VA loan benefit to do a 100% financing. With the rates as low as they are, it practically free money. If you have something better that you can put the $135K (your savings) to then I would highly recommend this route. You will still have plenty of benefit left over to use when you move to a new location. Yes, theoretically you can have multiple VA loans as long as you have VA loan benefit left over.