Los Angeles, CA, CA · Member since 2014 · 23 posts · 9 votes
Hey Guys,
I was looking for a lender in LA who specializes or has a lot of experience with FHA lending. I'm looking into owner occupied multi-families in the LA area and wanted to get some financing lined up.
I have a potential deal that I'm looking into and I wanting to find out more info on FHA lending for a owner occupied a multi-family 4 unit building in LA. I was looking into buying a property owner direct and using FHA financing but it is over the limit for FHA. I wanted to use FHA to cover the majority of the purchase with low money down then making up the difference of price with cash and some owner financing.
Let me know what you guys think. As always any feedback is much appreciated.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
11y
@Robert Tropp Sounds great. Also I think you can go 5% or even less down with OO conventional these days. You can PM me for mortage broker if you still need one. Good luck!
Los Angeles, CA, CA · Member since 2014 · 23 posts · 9 votes
11y
@Matt R.. 5% would totally work. I'm trying to protect my capital right now and don't want to come up with 20-25%, plus I need a place to live so I figure owner occupied is the way to go for me right now.
Investor · Vista, CA · Member since 2015 · 163 posts · 58 votes
11y
Robert Tropp you can do 3.5% down on OO MFH. I'm in the market for the same thing. I have a good broker that I'm working. PM for his contact. Located in San Diego
Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
11y
@Robert Tropp With FHA you will certainly be able to do a 3.5% loan. Depending on your income, credit, landlord experience, other conventional loans might also be options.
Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
11y
HI Robert,
I work with self employed and investors as a niche in lending.
Above someone mentioned conventional with 5% down which is true but thats only for conforming loan balance in LA county of 417k or lower while 2-4 units will require 25% down.
There are some niche programs for conventional that are 5% for 2-4 units but the MI company will not insure the product so it cant be done until a MI company is willing to insure.
FHA 3.5% down will be the best option for 2-4 unit property in LA if that is your main objective.
Depending on your income you may need to use the rental income from the other units to qualify as well.
If you have an update on this search, I'd be interested to hear it. Did you find a lender? Did you close on the property you mentioned or did you find another one?
I'm also looking to purchase a small multi-family in Los Angeles via an FHA; so I'm looking for similar case studies.
I was looking for a lender in LA who specializes or has a lot of experience with FHA lending. I'm looking into owner occupied multi-families in the LA area and wanted to get some financing lined up.
I have a potential deal that I'm looking into and I wanting to find out more info on FHA lending for a owner occupied a multi-family 4 unit building in LA. I was looking into buying a property owner direct and using FHA financing but it is over the limit for FHA. I wanted to use FHA to cover the majority of the purchase with low money down then making up the difference of price with cash and some owner financing.
Let me know what you guys think. As always any feedback is much appreciated.
Hi Robert,
I've worked with these scenarios for FHA owner occupied many times prior there are certain guidelines that are much different than standard FHA plus the fact you can use income that's not yours or projected income to help you qualify.
In areas where rent to price ratios are higher, the income from the other 3 units can practically "self qualify," the entire property which means you need very little income of your own.
Some other things to be concerned about are 3 months of reserves on these FHA loans as compared with "no reserves," usually needed on normal FHA loans.
Self sufficiency test, the gross rents of all units including the unit you'd be living in must as a monthly income figure be equal or greater to the PITIA of the entire property or higher.
Hope that helps. Let me know if you have any additional questions on your 2-4 unit FHA search.