Hello,
First time poster. Looking to make sure my numbers line up. Looking at a 4 unit in Cicero, Illinois.
Property cost $270,000
Total debt is about $1000/month
Mortgage if min down payment FHA (3.5%) seems to be about $1700
Total debt = $2700
4 units currently renting month to month.
Unit 1 $850
Unit 2 $850
Unit 3 $750
Commercial space $1000
Taking the 3rd unit as primary resident.Leaves about $2000 in qualifying rental income (property is self sufficient) @ 75%.
Total debt -$2700 - $2000 in qualifying rental income = $700 remaining debt coverage.
In theory, less than 50% DTI would hit the target @ showing about $20,000 gross income per year?
.....
This seems low but, my math should equate.
Cash reserves. I don't know bank statements shows cash to close and nothing more , if that's an issue. I assume lender want to see a few months left in the bank to cover the mortgage....Any thoughts on this?
Finally anyone know if there is down payment assistance on Mix-use 4 units? Loan, grant, or otherwise...in Illinois.
I found Chase $5,000 but, thats it. IDHA does not seem to specifically state 4 units not being eligible....
Best case scenario as cash to close would be about $6,000 if seller concession on closing cost (offer 270,000 but seller covers closing), $5,000 chase grant. Then you have escrow on 1 quater of property tax and 1 year of insurance.
Am I missing anything or getting anything wrong in this scenario?
Appreciate your input.
