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Updated over 8 years ago, 05/14/2016
Alternatives to FHA investing, turned down for Duplex
Hi everyone, just completed the long approval process for a duplex in New Jersey- FHA 3 1/2 % down, the amount to be financed was 211,000. Was about to go to closing, the mortgage company told me they couldn't get an under writer to close on it because they didn't believe I was willing to rent my current home out and move into One of the rentals.
I have about $ 20,000. - was only going to have to put $9,000. down, ( closing cost tied into price ) rentals were $1,200. Each. Would have been great income.
My question is, what other ways are there to go about getting financing the next time a find a good deal like this? I only attempted to use FHA because of the amount of money I would have had to put down.
Any ideas? Thanks.
Greg,
Please pm me and I might be able to assist. My office is in Marlton NJ.
Look forward to hearing back from you when time permits.
Regards,
Joe Scorese
- Joseph Scorese
Try contacting Dominick Lombardo from Allied Mortgage Group. He's great at getting things done and done quickly.
https://dominicklombardo.alliedmg.com/
@Greg Torian, sorry to hear that. You may want to skip on the mortgage brokers and try working with a lender directly (i.e, I'd take @Joseph Scorese invitation to reach out). We were running into the same issue you did, and finding a mortgage bank opened a whole series of possibilities. Your loan officer will be your ally in this. Obviously your intentions to move into the property have to be true and honest, and you may have to provide proof that your current home is going to be rented like a singed leased on your current property and maybe even a deposit into a rental security account. But with the right lender, and if your are indeed going to OO, you should be able to get an FHA loan.
Starting to build a good relationship with a local lender will pay off. Listen to the podcast with Arthur Garcia (is one of the first 10 podcast). He offers a good bit on this.
The other alternative - at least as it was presented to us - is an investment loan, which requires 25% down in addition to the 6 months PITI for all properties (and yes, you are supposed to have this anyways, but in NJ that adds up quickly because of taxes).
Good luck!
@Greg Torian, any equity in your own home? Would renting out your own home easily cover your current mortgage? Maybe actually DO that, rather than tell the bank such an unlikely tale?
What? You never had any intention of renting out your home? You see what's wrong there?
Alternatively: Save up more? Start smaller? Go for a joint venture partner? Ask other Lenders?...