All Forum Posts by: Krupa Patel

One more question... have you found that in this scenarios lenders try to calculate your % down based on the cash flow of the property or based on the income of the borrower? Chase says they won't look at the income the property brings in, but I now have 2 other lenders (smaller ones) saying they will look at the income of the property only.

Thanks Phil. It does sound like I've been talking to lenders with their own (higher) standards.

I had been holding up to 15K for my down payment, up to 15K for closing, and up to 15K in reserves, for a total of 45K for this purchase. It sounds like I'm still within the limits of what lenders are looking for with my 45K, and that I had just been talking to lenders with really strict/unexpected limits.

Hi, 

I have been planning on purchasing my first property ever. My plan has been to buy a fourplex (all four units under the same roof), be an owner occupant in one of the units, and put 3.5% down. From the forums on here a lot of people have been able to do this.

I identified a property that I like, but I have had a mixed bag of responses from lenders on whether I could buy with just 3.5% down. Of the 3-4 lenders I've spoken to so far only 1 of them (Chase) has said that I can purchase a fourplex with 3.5% down and be an owner occupant. The other banks have said something else ranging from that they'll require 25% down for a fourplex to that they will look at the income the property produces and not my income.

Some more background: I have a credit score that ranges from 769-799, I'd have a debt-to-income ratio of about 31% (based on my personal income) which I'm told for FHA is a very safe/good number. If I were to buy a single family home I could afford up to a 400K purchase price (with 3.5% down), but I'm trying to buy a fourplex for 315K-350K.

Basically, I'm told by lenders left and right that I'm a great risk, but other than Chase, I'd have to put more down.

The bottom line:

Why am I getting so much variation in my responses from banks? Can anyone clarify for me if there really are rules around FHA and the percent I can put down for an FHA? What has your experience been?