How much I would have to put down on an owner occupied triplex if I was going to live in one of the units.There are currently tenants in one unit, I would live in another, and the third unit apparently has been unoccupied for several years. I have only seen the two vacant units, but I assume all three are fixers based on that. Am hoping that I can put down 10% - accept the fact that I'll have to pay PMI until I can do the fixes/get the place up and running/the market recovers (I know that will take awhile ) so that I can eventually reappraise - and go the conventional financing route. Thanks in advance for any insight anyone can offer. Any recommendations on lenders would be great, too.
Marana,AZ | Sep 12th 2011
by zachre_...
Answer
by william
FHA allows you to put 3.5% down on Owner Occupied purchases. If there are property deficiencies, you can do a 203K loan where you can actually finance the improvements. FHA charges an upfront premium of 1%, and there is also a monthly MI of 1.15% annually. The monthly MI could drop off once your loan reaches 78% of the original loan amount. If you use conventional financing, you won't have to pay the upfront fee, however there will still be monthly MI if you only put down 10%. The best pricing is for 25% down conventional. No monthly mortgage insurance, and there are no hits for investment properties as well. I am a licensed Loan Officer in Scottsdale AZ. WilliamAcres.com Sep 12th 2011 |
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