All Forum Posts by: Conor Hussey

Originally posted by @Damian Bialonczyk:

@Conor Hussey

Your table sums it up, pretty much. There is a separate FHA inspection that has some relatively inflexible requirements for the condition of the property (e.g. no holes in walls, all hand rails must be installed, etc...). Besides that the process is not really at that different.

For closing costs I typically estimate 2-3% of the sale price. Use one of the calculators to help estimate operating expenses - BiggerPockets offers some good tools or I use DealCheck sometimes too.

My original post was a little confusing. I should have clarified that both charts assume you owner-occupy the space. I know the down deposit requirements increase significantly if you do not occupy the space. 

Can you leave your owner-occuppied property (w/ conventional loan) after a year similar to FHA Loans? For both loans, how much cost would you assume to incur when I refinance the subject property?

What are the typical income limits? I understand they vary, but is there a benchmark for this?

Originally posted by @Andrew Postell:

@Conor Hussey wow, lots to comment on here.  And this is why it's imperative to speak with a Loan Officer directly about these things - GET PREQUALIFIED!  It is a must!

1. Down Payment - To buy a 4 unit property with a conventional loan the down payment minimum is 25%.  That's a huge difference that the table does not reference.  The table is for single family homes.  
2. Work History - Conventional loans absolutely, 100% require that you are employed.And they will ask about a 2 year work history.  Not sure where you got that table but that item is absolutely incorrect.  
3. Primary vs. Investment - FHA loans do require you to live in the property....but so will conventional loans if you are wanting a "primary home" interest rate. If you are not going to occupy, then you will receive a higher interest rate.
4. 3% Down Conventional? - Now there is a 3% down conventional loan that is possible on a 4 unit property.  You'll have to occupy the property, and you'll need to have a certain income (or lower) to qualify for it.  Depending on what part of the country you are looking in the income limits change but this is something that just about any loan officer can tell you.

Hope this all makes sense.  Feel free to ask anything else if you need.  Thanks!