Getting stuck at the 75% on FHA quad
I am supposed to close on my first property(quad) next wednesday, but the FHA just came back and said that 75% of their evaluation of rents doesn't cover the mortgage. I am buying the place for 330000, and each unit was comped at 800 each, three one bedrooms and one two bedrooms. They had each at 800 what doesn't make sense. My guy told me I would need to get down to 200K for those numbers to work. Does anyone have experience fighting this, or finding a way around it.
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They take total # of units - 1 (you live in) x .75.
800 x 3 x .75 = $1,8000
Your P and I only comes out t o1,427.96 with a $318,000 loan amount and a 3.50% interest rate. I'm assuming my numbers are ballpark accurate.
Factor in insurance and taxes and you are probably above the $1,800. Hope that helps