Minimum downpayment for an owner occupied triplex?
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. by zachre_697_303 from Marana, Arizona. Sep 12th 2011
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
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
Ask our community a question.
Get an answer
Related Questions
