| Posted by: Philip Mar 9 2004, 01:31 PM |
I have searched and searched and have been unable to find lending information about owner occupied multifamily housing. I have found a 6 unit building that I would like to purchase and occupy one of the units while renting out the other 5. I don't have a whole lot to put down, but have enough income to afford the monthly payments on the entire building without the renters.
Are there programs out there that allow this? I have seen the FHA 3% 4 family program for first time homebuyers (which I am), but it does not appear to allow more than 4 units within the building.
Any help, suggestions, or direction would be greatly appreciated.
Thanks in advance!
-Philip |
| Posted by: loanuniverse Mar 9 2004, 07:27 PM |
As far as I know, and I am not a residential lender, the limit in multi-family to get some kind of residential type financing is 4-units. Anything bigger than that requires a commercial loan.
Income producing property loans like those require a 20% down payment on average and are underwritten using rental income as your source of repayment. You can find a good idea of the type of calculations used by going to the page sensitivity
There are a dozen other responses about how to finance rental property scatttered about the site.
Without the downpayment, the only other option is to borrow the additional 20% either in the form of seller financing or another source.
It would be very difficult to find any lender mainstream or otherwise to lend with 97% loan-to-value.
Hope this helps. |
|
|
