All Forum Posts by: Krupa Patel
Krupa Patel has started 1 posts and replied 3 times.
Post: % Down for FHA
- Investor
- Oakland, CA
- Posts 3
- Votes 0
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.
Post: % Down for FHA
- Investor
- Oakland, CA
- Posts 3
- Votes 0
Originally posted by @Phil G.:
I'm selling a 4 family I own to a guy who is buying it with an FHA loan and 3.5% down. I'm providing the maximum sellers contribution of 6% of selling price toward closing costs. Lenders can add their own lending restrictions or overlays. With a building with more than two units, you will need a reserve of 3-6 months of monthly payments, depending on the lender.
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.
Post: % Down for FHA
- Investor
- Oakland, CA
- Posts 3
- Votes 0
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?