Posted on: 27th Oct, 2007 08:39 am
I would like to know if there are any programs out there for a 3 unit property that I will live in as my primary residence. Currently I rent. This would be my first home. The other 2 units are rented for 600 per month and I can buy this for 145 thousand dollars. I would like to put the least amount possible down. I heard that I must put 20% down. I hope thats not true
No you do not have to put 20% down, but that will depend on your income, credit score and assets if any. If you can qualify using your income on paper with w-2' & paystubs, with at least a 680 score you should be good to go @90 -95%.
edited - don't ask for business if someone wants to they can contact you or sign up for lenders through this site.
edited - don't ask for business if someone wants to they can contact you or sign up for lenders through this site.
Hi Rich,
Welcome to the forums.
It's not that you have to make 20% down payment always. It can be even 5-10%. But this decides how much you'll get as a loan. Also, lenders prefer borrowers with a 15-20% down payment. This ensures them that you are a potential borrower and have the financial ability to manage your payments.
I am not exactly aware of loans on 3 unit properties. But there are several loan programs offered against different types of properties and this would also vary from one state to another. If you would check out with Eric, Eugene or any of the lenders and mortgage professionals participating in our forums, I guess that'll be great.
Take Care
Welcome to the forums.
It's not that you have to make 20% down payment always. It can be even 5-10%. But this decides how much you'll get as a loan. Also, lenders prefer borrowers with a 15-20% down payment. This ensures them that you are a potential borrower and have the financial ability to manage your payments.
I am not exactly aware of loans on 3 unit properties. But there are several loan programs offered against different types of properties and this would also vary from one state to another. If you would check out with Eric, Eugene or any of the lenders and mortgage professionals participating in our forums, I guess that'll be great.
Take Care
Depending on your credit score and financial situation you can get as high as 100% finacing. But to tell you more i would need more information.
Hello Rich,
You can make less than 20% down payment or even less than that depending upon your credit, but for that you will have to pay for the private mortgage insurance (PMI).
Lenders require PMI from homeowners who obtain loan that are 80% or more of the home value. This protects the lender from loss in case the borrower defaults on the loan.
You can make less than 20% down payment or even less than that depending upon your credit, but for that you will have to pay for the private mortgage insurance (PMI).
Lenders require PMI from homeowners who obtain loan that are 80% or more of the home value. This protects the lender from loss in case the borrower defaults on the loan.
How much you can borrow will be, in part, determined by where you are located. In Connecticut, for example, if you qualify based on current job and credit stability, you can borrow up to 97.75% of the purchase price, and perhaps also obtain a downpayment and closing cost assistance loan, which would actually bring your total borrowing over 100% in some cases. This type of loan is done through CHFA - Connecticut Housing Finance Authority. Your state is likely to have a similar arrangement for the purchase of a home - check with the state banking agency for further information on this.
with 5% down, you will get a rate in the 5's right now. If you want to put down only 3% you can possibly go FHA but the rate will be a little higher. It's usually about a 1/4% more than a conventional mortgage rate.