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Old 03-13-2012, 03:55 PM
 
15 posts, read 76,021 times
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I have done a search and find conflicting info posted Here.
I want to buy a 4 plex. If I get FHA backed loan... Do I have to put more than 3.5% down? Someplace I read I need 20%, other places 3.5%... Can anyone give me a firm answer?
Anyone here from nw Ohio can recommend a lender?

I am looking at a place around 300-320k ... So the $ difference is large. I could do the 20% if need be, but want to avoid as it would stretch me thin. Would 10% down work? Yes, I will be living in one unit. The monthly payments r not an issue as this places other three units will more than cover mortgage... Just the down payment I hate to put so much down if I can avoid. Thank you
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Old 03-13-2012, 06:19 PM
 
Location: Austin
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To receive FHA financing, you have to be an owner occupied buyer. FHA guidelines are 3.5% for a single family home up to 4 units. Unless you have some major credit issues, you should be able to do 3.5%. 20-25% down is for investors.
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Old 03-14-2012, 04:03 AM
 
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That is what I thought too. Thank you for confirmation. I have my eye set on a place hope I can get it in about a month.

Should I get pre approved or will they not do that for a multi plex? I need to find out lease info for the place I want to buy bc it is occupied. I will need to have someone be ready to move out if I can get this loan
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Old 03-14-2012, 05:04 AM
 
Location: Southern New Hampshire
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But don't most states require that new owners honor current leases? So you may not be able to have someone "be ready to move out" just because you want to move in. (Not sure if it's different for owner-occupants of a multi-family building though.)
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Old 03-14-2012, 05:19 AM
 
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Hi Karen... Yes I believe I will need to honor the leases. The place has long term tenants, so it is my guess they just have month to month leases. So whatever is required by law, I think 30 or 60 days notice. I don't plan to be a jerk about it, i will ask if anyone wants to move and I will offer some assistance in moving even if they want it ( I own a big cube truck, and will offer that along w 2 guys to move their things if they so desire). I own several houses in my town so I will offer too a deal on rented one of them if they want to move into one of them... Though none of the other houses are as nice as this place. The last thing I would want is to have all my tenants hate me for making someone move. Up to now with the 16 units I have my tenants all respect me and appreciate my flexibility and patience if a situation arises.

My main concern is my status of self employed, the fact that I traveled most of 2011 so don't show much income at all ( all of my units I have now I bought in the last half of 2011) on my tax returns, and the kicker...I have about $310k in student loan debt. If you search for 300k student loan u wll see my post.

Btw.. I'm really happy to have found this forum and I hope I will be a contributor to it over the years...
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Old 03-14-2012, 09:47 AM
 
Location: Richardson, TX
11,815 posts, read 18,915,338 times
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Quote:
Originally Posted by drosenseo View Post
Hi Karen... Yes I believe I will need to honor the leases. The place has long term tenants, so it is my guess they just have month to month leases. So whatever is required by law, I think 30 or 60 days notice. I don't plan to be a jerk about it, i will ask if anyone wants to move and I will offer some assistance in moving even if they want it ( I own a big cube truck, and will offer that along w 2 guys to move their things if they so desire). I own several houses in my town so I will offer too a deal on rented one of them if they want to move into one of them... Though none of the other houses are as nice as this place. The last thing I would want is to have all my tenants hate me for making someone move. Up to now with the 16 units I have my tenants all respect me and appreciate my flexibility and patience if a situation arises.

My main concern is my status of self employed, the fact that I traveled most of 2011 so don't show much income at all ( all of my units I have now I bought in the last half of 2011) on my tax returns, and the kicker...I have about $310k in student loan debt. If you search for 300k student loan u wll see my post.

Btw.. I'm really happy to have found this forum and I hope I will be a contributor to it over the years...
Are you saying that all 4 units are currently rented out? I don't see how you could get an owner-occupied loan in that case.
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Old 03-14-2012, 01:41 PM
 
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Yes all 4 currently rented. I will look into it in the next few weeks and if I am able to buy it I will let you know how and if the process works. I won't be ready to buy the place til may as I am currently traveling and out of town.
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Old 03-17-2012, 08:59 AM
 
Location: Southern New Hampshire
8,417 posts, read 14,530,435 times
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Thanks for the clarification on the leases. Hopefully if you can buy the fourplex one of the tenants would be OK with moving.

I think the self-employment might be more of an issue for a mortgage. I know that years ago many financial institutions did no-doc, stated-income loans, as in, "I hereby state that my income is $150,000 a year." I remember being shocked that anyone could get a mortgage that way! The world of mortgages has changed, but I think getting rid of no-doc loans was a step forward.

Anyway, best of luck to you and do keep us posted!
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