All Forum Posts by: Frank Jones

My son is trying to buy his first duplex using a 3.6% down FHA 30 year mortgage. He's going to live in half while he does some remodeling. His offer has been accepted and he has been pre approved for the mortgage. His problem is, the area where this duplex is has very few duplexes and the appraiser can only find one comparable sale. Our mortgage broker doesn't feel like the mortgage will fly without more comps. Any suggestions?

The $25K was the doublewide manufactured home including all set up cost. The manufactured home by its self was $13K so the "extras" were about $12K. These included lot prep, septic tank, electrical and water connections, simple porches and steps, foundation skirting, etc.

I'm experiencing similar problems with State Farm. I have 2 duplexes insured for about $1300 per year, total. I'm considering a 4 plex, worth about the same thing as the total of the duplexes but the insurance cost will be $2200 annually instead of $1300. WHY?

I found a low rate on one with 25% down which I'm probably going to take. 20% seems nearly impossible, even with a very high credit score for investment property here in Alabama. I think in the long run it will work out for the best.

Thanks Jake. I believe I have it handled with a smaller personal loan, using one duplex as collateral, from my regular bank for the down payment needed to do a traditional, fixed rate (low cost) 30 year mortgage on the new property. This will work well because I can pay off the smaller, adjustable rate loan quickly (2 years) with the cash flow from both properties leaving me a small monthly mortgage down the road.

I wouldn't worry about it. In some states, lawyers for buyers, sellers and the mortgage company are required at closings. There's nothing to stop you from doing whatever you need to do as long as you're completely above board which I assume you would have been anyway. 

I've only talked to 5 or 6 different companies so far (most locally) and they all offer some component of the deal I'd like to find but not all. I can find 30 years fixed but they want too much down, I can find reasonable interest rates and closing cost but only on 15 years for investment properties. I find some people who want too much for everything or will only do ARMs. I'm still searching. I've got to think someone has just the right deal.

Can you get a 10 or 20 percent down, 30 year fixed interest mortgage on an investment property anywhere? I've found adjustable rates, 25% and 30% down, 15 year, etc., etc. some at 5.25 to 5.5% which is fine but the best of all worlds for me would be 10% or 20% down, 30 year fixed, no PMI, interest at 6 to 6.5 percent with reasonable closing cost and no points. Can this be found? I have excellent credit (750+) and lots of assets but I can't seem to find what I consider to be a "good" deal on a mortgage.

What percentage of their value can you typically cash out?

Yes, they are on 2 parcels that touch each other.