Traditional govt mtge options.. Thoughts?

[Ryan Z.]

Hi BP:

I'm looking to finance a SF purchase for myself (owner-occupied). I own 2 properties in FL, both single family, one is FHA, other one is FNMA Conv. Both rented and positive cash flow.

Subject Property:  Traditional detached SF property in NJ

Purchase amt 410k

10% down (don't have funds to do 20% unfortunately)

While I am confident in my mtge guy, for prudent measure I wanted to check w/ the BP community to confirm the following..

• Freddie:  'My income is too high' (Can certainly give figures, but not sure how to break it down.. 2017 salary + bonus; Rental income, 2018 salary formally approved and documented, but not effective until July; and 2018 bonus (which I have received already)
• FNMA:  'To get a second FNMA mtge, I need to put down 20%' (which I would like to do, but cannot come up with an extra 41k)
• FHA: 'My only option' (with the 1.75% upfront PMI and monthly PMI for life of the loan). (I know FHA 15yr doesn't have PMI, but I cannot afford the payment on a shorter duration loan)

Any further detail needed?  Please let me know.  I appreciate any advice or feedback.

Ryan

[Jeff Dulla]

@Ryan Z. Unless there is information we are not receiving, it sounds like you are getting some misinformation. You shouldn't have an issue buying through either Freddie or Fannie with the scenario you are describing. Some notes to your bullet points:

- Freddie: This sounds like you are talking about Home Possible (a Freddie program for first time home buyers and targeted areas). Through a normal Freddie loan, there are no income restrictions for being too high. 

- Fannie: You shouldn't have an issue putting 10% down. In face, based on the scenario above, I would think Fannie/Freddie are your easiest options (not to mention least costly).

- FHA: I would think this would be the hardest option for you to use. You will have to prove that you have either moved or are moving up in home size compared to the property you already used FHA on. It sounds like that shouldn't be a huge issue but it is an obstacle you would face and there is a level of subjectivity to it.

Maybe there is something missing from your overview but what your lender is telling you does not make sense to me. 

Hopefully this helps.