All Forum Posts by: Bill Rich

Actually no, the area was exempt from the income limit. According to Freddie IT people (the ones who set up the algorithms for LP) the HP is a very tough program with multi family in general

Chris yes HomePossible allows for 5% down on multi families but the original poster indicates that it needed rehab some HP would not work here. I have tried doing several HP multi families and LP is not a fan unless the borrower has SIGNIFICANT reserves. I had 2 different scenarios where the DTI was under 35% and 12 months reserves with a 730 or higher FICO and LP would not approved. Even got Freddie people on the phone to make sure it was running correctly and they confirmed and said LP is tough on those files.

One other thing to keep in mind with a 4 unit property using an FHA loan the property must meet self sufficiency guidelines. What that means is the total rent from all 4 units must be equal or greater than the PITI payment after you subtract 25% from the gross rental income.

Hi Tim

As Jeff mentioned I am licensed in Michigan and would be happy to help you anyway I can. Please feel free to reach out to me and we can review your goals in detail. 

Thank you! 

@Kevin Romines

The portion about being able to complete work yourself is not entirely true. HUD does allow for sweat equity as does Fannie Mae. Where it becomes difficult is most lenders will overlay and low allow sweat equity and would make you hire a GC to complete all the work.

@Jared Baker 

As I mentioned you will need to find a lender who allows for sweat equity.  My company requires a GC as do most others.  Good luck!!

In my area they have been offered without any interruption for the past year or longer. 

No Greg I am not talking about a repair escrow, talking about a repair credit. HUD will do the $100 down program with any HUD home as long as the agent writes it into the offer. I work with a lot of agents and I guide them on this all the time and we are always able to utilize it.

Greg, not going to spend time digging up settlement statements to prove something I already know. HUD does do repair credits (aka inducements to purchase). You can disagree if you would like but they do exist.

Ok, with all due respect, I am not going to argue with you about it.  I have seen them first hand.