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Old 07-26-2008, 02:01 PM
 
Location: Oakland, CA
1 posts, read 2,263 times
Reputation: 10

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Hello,

I am considering buy a 750K duplex in Oakland, CA. The duplex will be my primary residence and I am a first time home buyer. The other unit of the duplex already has a tenant and will remain till her lease runs out. I will be putting in 20% (150K) as the down payment if I proceed. I do not need the income from the rental unit to qualify for the loan.

I recently talked to my loan broker and he said that the duplex will not qualify for an "Agency Jumbo" since it is not "single family". As such my rate would be higher than the a single family home of the same value.

Do I have any other options besides paying the higher rate?

Thanks in Advance!
-RM.

PS: Once I have the place and the tenant moves out, I will be using both units in the duplex and will convert the duplex to a single family. Will converting to a single family at a future date automatically drop the
rate?
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Old 07-28-2008, 12:12 AM
 
Location: NC
1,264 posts, read 2,120,804 times
Reputation: 534
FHA is a very viable option for you. The purchase price falls well within FHA loan limits for duplexes in your area.
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