8-10% down on 3 fam. possible?
Hi, I would like to buy a 3 family in the price range of 800k-1m. is it possible to get a mortgage of with a 8-10% down?
Hi,
I would like to buy a 3 family in the price range of 800k-1m. is it possible to get a mortgage of with a 8-10% down?
What year is this? You are kidding of course….? No? Skip the forum and go right to a couple of banks and see what they want to charge you for a loan over 70% ltv right now…
Call a mortgage broker with all the specifics of the property. Based on 75% of the rental units and your personal income they’ll tell you what you’ll qualify for. What you qualify for might allow for a smaller downpayment.
One thing to keep in mind too, banks/mortgage brokers want to see 6 months cash reserve. So on top of the downpayment you need enough cash to cover all expenses after closing for 6 months (as security in the event of job loss, no tenants, etc etc etc).
The rental income from two apts can help you to qualify. Lenders usually consider 75% of that income.
I think the only way to finance more than 90% is an FHA loan:
http://www.hud.gov/buying/loans.cfm
The minimum required is 3.5%. However there are a certain number of criteria to meet in order to qualify.