First Multi Family Purchase

[Mike Fontaine]

Hello Everyone! I'm currently looking at purchasing my first property in the Leominster MA area.

I'm focused currently on an FHA 203k loan where I will live in the property and repair/upgrade it. I have a GC lined up and I have 10 years of finish carpentry experience. I also own a small property management company (62 units under management). Last 2 years I've claimed self-employed income and I personally brought in roughly 25k per year from just repairs/carpentry.

Talking to one local mortgage broker he doesn't believe I have the income to support it. This year we are booked out much more and we have increased our rates. Including growth in the property management company, I expect to at least double my income. With that, I am targeting a 3-4 family and I was under the impression that expected rents can be taken into account with the loan. 

Long story short, maybe I'm just ignorant of the mortgage system but, I wanted to reach out to see if I could gather information about whether I have options or if I am stuck waiting another year to claim further income before purchasing. Any helpful info is appreciated!

[Kyle Curtin]

Hi Mike,

     I would certainly get a few more opinions from other lenders. I have heard often that just because one lender has a certain opinion that is not necessarily the clear cut and dry answer altogether. I have heard stories of investors calling 10 banks and on the 11th call, they were able to receive funding for their project. The next lender you call may be the one that looks at your situation differently and is able to guide you in another direction that may be able to make it work, or worst case scenario they tell you the same thing as the first lender. In that case you ask a third, fourth, fifth etc., and if you still get the same answer then you will be able to pool the advice from the prior ones and be able to take the fastest approach on your end to be able to be eligible. The income from expected rents should certainly be taken into account with the loan. Our team utilizes a lender that has specialized in 203k loans especially for multi's for a very long time and If you would like I would be more than happy to introduce you guys to get a second opinion.

Thank you,

Kyle