All Forum Posts by: Matthew Conner

Thanks for the clarification Wayne. I didn't realize there was a difference for a family member co borrower. So if he had a family member cosign he could potentially get a 4 unit for 3.5% down? And we were not going to agree to say I was living there when I wasn't, just saying they said the only way we could do FHA was for me to also live there.

Thanks Elise. I am trying to make sense of all the different scenarios and see if what we wanted to do is possible. It sounds like it might have worked at one time but things have changed.

Thanks John and Steven for the info!

We were told by the lender we are working with that I would need to sign an affidavit saying I would move into the property to qualify for the FHA loan. Do you think it's worth trying to work with this lender in this situation or try and find another FHA lender familiar with this?

I'm working with a partner and we are looking to find out if a situation would be possible. We would like to partner on a 3-4 unit property where he would occupy one unit and I'd be a non-occupant cosigner. We have applied together for pre approval and found that 5% down payments are only available for single-family. 2 unit is 15% down, and 3-4 unit is 25%. 

Obviously this situation doesn't qualify for fha. The only other option I've seen referenced is Freddie Mac home possible. As far as I can tell non-occupant co-signers are only allowed for single family. Either way we'd be over the income limit together.

Is what we want to do possible? Can we get a mortgage for a 3-4 unit property with 5% down with 1 occupant bprrower and 1 non-occupant co-signer?

Thanks in advance!

Thank you all for the responses. It sounds like while it shouldn't be the case, it could appraise for the contract price even if it's not actually worth it and I shouldn't count on an appraisal to protect me from overpaying.

My wife and I are looking to buy a house, and as anyone looking knows the market is pretty tough. We are working with an agent. Ignoring other concerns we have had about him, he told us something regarding appraisals and I am looking to see if it is correct.

We found a house listed for 340k. It had been on the market for >90 days. Purchased in 2015 for 206k. It had minor cosmetic updates since the sellers purchased it (resurface kitchen cabinets, new flooring, painted some flooring, new paint, new hvac) is pretty much it.

Based on looking at what had sold and is selling in the area, I felt it was really worth around 265k, but we realized that would never go and were willing to pay more based on our need. We offered 295k.

They countered at 325k. I didn't want to go any higher as I felt I was already offering a premium price. My agent was suggesting 310k and I was uncomfortable going that high. I was thinking that if I am actually right and its worth less, it might not be a problem if it actually appraises for less I could use that to negotiate. My agent said that it didn't matter it would appraise for whatever the agreed purchase price was and the deal would stop if it wasn't 310k. I said I'd offer 300k and they didn't take it.

Regardless of whether I am right about the real value, is what the agent said true? Would it probably just appraise for the purchase price if we offered 310k?

Any help is appreciated!