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Updated about 5 years ago on . Most recent reply
Is My Lender Full of $@*T?
I just received the text message, below, from a potential mortgage broker who is claiming that because the house I want to buy is a 3-unit, I will need to put down 15% for an FHA loan or 25% for a conventional loan... Is he full of $@*T?
"Good evening! I have gone over guidelines for multiunit properties for FHA & conventional with 4 lenders. Conventional will require 25% down payment plus closing costs and FHA is 15% down payment plus closing costs.
So...with that in mind, you will need approx $19,000 to go FHA and $32,000 to go conventional.
Interest rate on the FHA loan would be 3.85%"
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- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
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Originally posted by @Rick Sheldon:
@Shaun Weekes $125K; about $1900
Since your rents are going to be more than your total mortgage payment including taxes, insurance and PMI you shouldn't have a problem with the 3.5% down. You must live in one of the units since this is FHA. The numbers that he is giving you sound like OVERLAYS to me. Mortgage Lenders a lot of the time will add additional rules to what Fannie & Freddie etc. require. The numbers that are being sent to you are incorrect. What state is this home in?