Indianapolis Mortgage loans

[Greg McGuire]

Hey guys. I'm looking at 2 or 3 multi family properties for my first real estate investment. I have spoken with a couple banks who send me to their commercial loan department after I explain what I am trying to do. I am a first time home buyer, and was wondering if anyone had some advice on whether or not an FHA loan might be the best bet in this situation. Or, if there are ways to get a loan for 5-15% down instead of 25% like the commercial lenders are expecting. Thanks for any feedback

[Mayank S.]

@Greg McGuire

1. It depends. If you plan to house hack and get FHA on your multi unit property, you may qualify for another loan in that year depending on your credit history/income/DTI etc. Assuming loan will be for another rental property investment purposes that means higher down payment requirement 20-25%. You may check the requirements with your lender.

2. Are you thinking of LLC for asset protection purposes? Normally lenders don't lend on LLC mortgage has to be on your name. There's plenty of discussion on LLC question which you can search here on BP. Basically if you are financing, transferring title to llc can trigger due on sale clause.