COVID 19-Buying a duplex in Southern California

[Marco Cruzatt]

I've been saving up to make my first deal. I would like to purchase a duplex (Two-Unit) in Los Angeles-CA. However, I'm aware that due to COVID-19 some banks have changed their regulations. For example, Chase has changed their minimum requirements to a min. down payment of 20% and at least a 700 FICO score.

What is my best option as far as a loan, I have great credit with decent income, therefore, I would want to put as little as possible down. 
In addition, when would be the best time to buy? Now, or should I wait a couple of months so price go down (if they go down).

Thank you 

[Tyler Hungerford]

Hey @Marco Cruzatt, you are correct, several banking institutions have changed their lending requirements, however, there are still a lot of mortgage companies who are providing competitive programs such as FHA, VA, and low down payment Conventional loans.

FHA loans are good, but there are conventional loans out there right now that you could take advantage of that are better and have a similar minimum down payment structure, it just depends on if your credit is good enough. With a conventional loan, you can typically still get a fixer upper property and get a good deal. Definitely something to explore, especially in this current market.

As of right now, I have several client's looking for investment property all over Southern California, but the numbers have to work. Any time is the right time to buy real estate, especially if you can find a good deal. As of right now, housing prices have stayed pretty steady in the Southern California market due to the high demand and limited supply available. It may make sense to wait a little while before you pull the trigger on your first investment property, but now would be the perfect time to start getting all of your loan docs in, getting pre-approved, and start looking for something. Just because you're looking, does not mean you need to buy right away. But if you have everything ready to go, once you do find that deal, you can pull the trigger and get exactly what you want! 

You and I should have a chat about getting everything in line for you so that when the time does come for you to invest in a small multi-family property, you're ready to go!