Fha loan senior at maximum with junior loan for difference

[Lee Houlihan]

Hi all!

Im looking at purchasing a 4 unit property. The listing price is at 1,275,000. The maximum fha loan limit in the county is 884,600. Is it reasonable to think I can do a FHA with my lender at the maximum and have the seller carry the difference and make interest only with a balloon payment in a predetermined amount of time.

Open to other strategies 

Also is there flexibility on a FHA with location. The property is less than a mile from two counties with loan limits at 1,336,000.

Thanks Lee!

[Jason Wray]

FHA is not flexible with loan limits. Also when you involve a seller held second and the lender finds out your going to have an issue with the majority of lenders. FHA is not going to insure a loan that has a CLTV over 96.5% with a seller held second that exceeds the county loan limit. Why would you want to use FHA for that loan size? The UFMIP/MIP is going to be horrible... Have you considered Jumbo with PMI?