San Diego Market. Duplex, triplex or 4plex suggestions?

[Adam Regos]

First time home buyer trying to house hack in San Diego. My lender has mentioned I can't do FHA for triplex or 4plex and need to put a minimum 15% down. Is this the case? I am looking at FHA for duplexes but a lot reach jumbo limits and the ones that don't I am still looking at a minimum all in mortgage payment of 2,500. Any ideas on how to get started house hacking in San Diego? Any financing suggestions? Any fix up financing suggestions? Thanks!

[Maxwell Ventura]

#repost @Adam Regos Would you wait to see what happens with Covid and foreclosures?

What did Warren Buffet say? "I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."

Read this closely: The likelihood of us having another foreclosure crisis is about 0% percent.

There seems to be some concern that the 2020 economic downturn will lead to another foreclosure crisis like the one we experienced after the housing crash a little over a decade ago. However, there are quite a few major differences this time. 

1) A robust forbearance program - And the concern is what happens after forbearance? The banks and the government learned from the challenges the country experienced during the housing crash. They don’t want a surge of foreclosures again. For that reason, they’ve put in place alternative ways homeowners can pay back the money owed over an extended period of time.

Furthermore, the Mortgage Bankers Association released last week - 'The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the 24th week in a row to 3.35%" 

Of the cumulative forbearance exits for the period from June 1 through November 15, 2020:

• 30.5% represented borrowers who continued to make their monthly payments during their forbearance period.
• 24.0% resulted in a loan deferral/partial claim.
• 16.8% resulted in reinstatements, in which past-due amounts are paid back when exiting forbearance.
• 12.9% represented borrowers who did not make all of their monthly payments and exited forbearance without a loss mitigation plan in place yet.
• 7.1% resulted in loans paid off through either a refinance or by selling the home.
• 6.8% resulted in a loan modification.
• The remaining 1.9% resulted in repayment plans, short sales, deed-in-lieus or other reasons.

“Nearly two-thirds of borrowers who exited forbearance remained current on their payments, repaid their forborne payments, or moved into a payment deferral plan. All of these borrowers have been able to resume – or continue – their pre-pandemic monthly payments.”

2) Equity - The Mortgage Monitor report from Black Knight indicates that of all active forbearances which are past due on their mortgage payment, 77% have at least 20% equity in their homes.

The high level of equity provides options for homeowners, policymakers, mortgage investors and servicers in helping to avoid downstream foreclosure activity and default-related losses.

3) Supply & Demand - One of the strongest indicators of any market, RE or not. Our active inventory is approximately 40% less than it was last year. Currently at 1.4 months of inventory county wide. DET homes under 2000 sq ft are at .8 months of inventory. We're in a heavy sellers market. With so much demand for houses there is no need to "firesale" someone's house if they can't make a payment. These people who enter into pre-forclosure are already getting bombarded by mailers, callers, emails, txts, from wholesalers and investors.

Hope this helps.