All Forum Posts by: Giovanny Alfonso

Welcome to BP! There is plenty of info on here and lots of experienced people as well. It's great that you have a general idea of what it is that you want to do so its easy to focus on learning just that. More than happy to help on any lending questions you may have.

@Chris Trupiano Conventional financing will require 15% down payment for single family and 25% down for 2-4 unit multifamily investment property.  There isn't really much room since these are Agency guidelines that the banks need to meet in order to get the loan done. You can always get a higher rate and use the points that you get as a lender credit to pay the closings costs. 

@Chris Trupiano is this property an investment or do you plan for it to be your primary residence, this makes a huge difference in what is required as a down payment? Most lenders aren't going to cover your closing costs just because. You can usually go with a higher rate and they will give you a lender credit that you can use to cover your closing costs.

Welcome! There is a wealth of knowledge on here. Pick a strategy and start learning about it. It's very easy to be overwhelmed if you try to tackle everything at once.

@Rachael Shad Glad I was able to help. 

Hi Rachael,

You can use 75% of the "proposed" rental income and apply that towards the debt of the home you want to purchase, when doing a conventional loan. So in this case you can use $637.50 to offset the debt on the investment property. Not sure if that is enough to get your ratios in line, but figured I would put that out there. Please let me know if you have any other questions.

Gio

@Alex R. As I mentioned in your other thread, you would likely be eligible for conventional financing but the down payment for an investment property is always going to be pretty high (25% in this case). If you want you can message me and we can discuss your deal in more detail. Thanks.

FHA can be done on a duplex but you must reside in one of the units. FHA is not available for strictly investment purposes. In the case that you do live in one, you can put as little as 3.5% down and pay PMI for the life of the loan. Then you can refi once you have built up some equity.

@Alex R.There are very few FHA approved condos in Miami-Dade county.

For the duplix you are interested in, I don't see why you wouldn't be able to do conventional financing. Only thing is you'll need 25% down payment and 6 month reserves but it is doable.

Hi Alex,

For conventional financing, you would need to wait 4 years after your short sale to qualify. It seems that you are past that period so with good credit and cash for a down payment you have a number of different options. 

How much are you looking to put down? Do you plan on living in one of the units or is it strictly investment?

Gio

Edit: seems like I was slow to respond. What did the big lenders tell you as to why you couldn't finance with them?