All Forum Posts by: Kristin Smith

Needing 50% $2m in checking...that stinks. Thank you both for the info. 
I’ve had to throw in the towel on that property, but would love to circle around and scoop it back up if no cash buyers grab it in the meantime before loans come back online.   

I’ve moved on to a multifamily property that should have no problem with conventional financing, hopefully conventional loans will stay available for a bit. 

That's tricky. I believe the short answer is yes. Have you and your wife already lived in the current FHA loan duplex for a year?
The tricky thing is that for her FHA loan they will consider your credit and other financials when she applies because you’re married if you live together. Hopefully the lender in this thread can shed more light on this

Thank you for the info Chris! Hopefully things all stabilize sooner than expected. There is new hope since the FDA just approved the off-label use of some very common drugs that have shown great promise in treating Covid-19. Mass amounts of these drugs are already in use in New York and are headed to other areas for use as well. We may see a resolution to all this very soon! Those positioned to take advantage of the situation in real estate will do their part to stabilize the industry...

Wendy-

I was told by my loan officer that all were suspended. My credit score is way above 650 but still no FHA loan was available to me

@Nicolas Biangel

As Tim mentioned, same happened to me. I was just notified by my lender that all FHA loans, including Homestyle, are suspended due to Covid 19. I am losing a home I'm in contract for because of it

@Willie Bradley you’ll have an easier time with financing if no renovations are needed

@Willie Bradley correction- I incorrectly stated you can get a residential mortgage for 1-5 units, it’s actually 1-4 unit dwellings that this applies to. Anything above four units is considered a commercial property. My apologies

@Willie Bradley

It depends on how many units in the apartment. If it’s 1-5, you can get a regular home loan but will have to pay 20% down if you don’t live in the property.

If it’s more than five units, you’ll need a commercial mortgage loan. It will also require a 20% down payment and will have a higher interest rate.

With a multifamily housing loan, the lender will take into account the rent you will receive per unit when qualifying you for the loan, so you can qualify for a higher loan amount.

This is a great time to take advantage of lower interest rates, as rates have just gone down again this week. Will you need to renovate this property before renting it out, or is it ready to go? The financing would differ with each scenario.

To find lenders, go to the BP marketplace on here and look for commercial or investment lenders. You can also seek recommendations here on the forums for commercial mortgage loan lenders. An online search will also give you options. Look for smaller local banks in the area of the property, they may offer portfolio loans with more flexible terms, rates and qualifications.

I hope this helps!

@Jacob Sampson

Renovation loans are currently suspended due to the Covid 19 situation, if you are talking about an FHA loan such as the 203k or Homestyle loan.

If you are taking about a conventional bank lender and a construction loan with two closings, that may still be an option.

@Willie Bradley

I just received word from my lender that FHA loans are suspended temporarily due to the Covid-19 situation. I'm not sure if it's all government home loans, or just renovation loans. Check with lenders to see what is available. FHA loans are a great option with low down payment IF you will live in the home for a year minimum.