All Forum Posts by: Chase Schwalbach

Yes... buying a condo is buying a single... regardless of the total number of units in the building. A 4plex is buying a building that consists of 4 units.

Got you. So I'm buying a single. I'll see if I can change the title.

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Originally posted by @Nathan Emmert:

COOK County

CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI

Single
$365,700

Duplex
$468,150

Tri-plex
$565,900

Four-plex
$703,250

http://www.fha.com/lending_limits_state?state=ILLINOIS

Wouldn't I need to buy all 4 and stay below the 700k max? Versus buying 1 of the 4 for ~700k.

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Originally posted by @Nathan Emmert:

You didn't mention whether your 1st mortgage was a conforming Freddie/Fannie or an FHA type loan.

As Mark implied, you can only have 1 FHA loan at a time (and I believe there's a limit to how often you can get FHA loans as well). If you are FHA you'd need to refinance which would require cash or equity as the LTV would need to be 80% (refi it as an OO while you still live there). From there you can buy a Single Family House (anything 4 units and under is considered SFH) with FHA and 3.5% down. There are limits on loan values with FHA and they go up based on number of units but you'll want to see what they are in your area.

Sorry - First loan was originally FHA, but I just refi'd it and am at <70% LTV currently. I don't think it is FHA anymore?

Anyways I don't think FHA works. I'm looking at a two floor single unit that is within a 2-5 unit building. The unit itself will fall somewhere around ~$600k, and from my reading this is way over FHA limits.

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Are you saying to get equity out of my current home, bringing it to 75% LTV total?

Why does the refinance step need to happen in the first place in this case? Sorry just a little confused about the steps. If I can just get a 3.5% down FHA on the new place, I wouldn't need any equity out of the old. Theoretically I could look to refi the old to get cash out and get me up to 20% on the new, but I'd love to avoid that.

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Hello all,

I'm looking to keep my current home and rent it out in the Chicago market. My current payment is around 700 less than I can rent it out for, and it's in an area that is rapidly growing.

I'm wanting to move into a new unit with 2-4 other units in the property. In terms of monthly payments, the 700 will cover almost the entire difference, and I'm able to put 10-15% down but would have to wait another year to save the final 40k to get me to 25%, which is apparently common in the area.

Does anyone have any advice for getting a mortgage without the full 20-25 percent down if it's my 2nd mortgage but I'm moving into it as a primary?

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All Forum Posts by: Chase Schwalbach

Chase Schwalbach has started 1 posts and replied 5 times.

Post: 2nd(but primary) duplex with under 20pct down in Chicago

Post: 2nd(but primary) duplex with under 20pct down in Chicago

Post: 2nd(but primary) duplex with under 20pct down in Chicago

Post: 2nd(but primary) duplex with under 20pct down in Chicago

Post: 2nd(but primary) duplex with under 20pct down in Chicago