All Forum Posts by: Peace Lily

@Chris Mason @Diana Muresan yes I looked up my address too. My W2 income was over the income limit in that area. If it was to follow the guideline, FHA, Freddie Mac seemed not to work for my situation. Diana you are correct. That is what the lenders told me. We are just trying to keep talking to other lenders and see if there are other alternatives with low down payment up to 10%. Thank you!

I have talked to 3 local banks and they all told me that the guideline is that if I cannot get FHA (either 3.5 or 5%) then it will be conventional which will be either 20 (if it is primary residence) or 25% for 3-family house. Home possible program has maximum income restriction so I was not qualified. My mortgage broker has been talking to 7 more banks and perhaps there is 10% down with conventional financing. @Jeff Ronningen it makes so much sense what you said. I just didn't know that logic when I bought my first multi last year. 

@Curt Smith Thank you so much for checking it out with your lender. I missed the opportunity of buying my first one on FHA. I was trying to use for my 2nd one and apparently it didn't work.

@David Zheng there is no 5% confessional loan for 3-family house from what the bank told me unless there is a special program such as Home possible. 

@Diana MuresanYou are right. I think that is what my broker told me. @Stephanie P.

Thank you all so much for the advice. I will keep looking for the lender although there was limited time before mortgage contingency expired. Thank you @Chris Mason @Cesar Avendano @Kevin S. @Russell Brazil

@Kevin S. It is about 40 miles between 2 properties in CT. You are correct. The bank did tell me about this rule. They were trying to see if there is any way to get around but not yet. @Russell Brazil My first 2-family is on conventional loan. I never used FHA loan in the past. I fully rented the existing 2-family house now. The reason I wanted to move to 3-family is it is close to my work place, close to beach, and of course, if I can have rental income from the other 2-unit that would be great. I understand if I buy single family there will be no problem to get FHA but I like to have multi family so I can live in with minimal expense. My mortgage broker is still trying to work it out. Is it true that you cannot move to the multi family to the next multifamily using FHA? Thank you ALL taking time to answer my questions!

Dear BP Members,

I have a question and hope to get your advice. I lived in a 2-family house for one year on conventional financing as my primary residence. I recently just moved out and rented out the whole house. The clause with my existing mortgage bank is that I can move out after one year of occupancy which I had fulfill. I saw a 3-family house and planned to buy and move in as my primary residence and applied for FHA or Fannie Mae financing but I tried with a few mortgage companies and all got rejected so far. FHA said that I cannot have both multi family on low interest rate and they said I was trying to use 3-family as an investment property even though I would be living there. The mortgage broker recommended me to refinance my existing 2-family house (not to take out equity) so that it becomes my investment property but I asked my existing mortgage bank and they said that I don't have to refinance it even though I am using it as an investment property. They don't mind. I am puzzled. I have heard other investors moving from one multi family to another multi family using FHA financing. Is that correct or am I missing something? What other options would I have to qualify low down payment? Many thanks for your advice in advance! - Ling

Cameron Norfleet thank you for replying. The 2nd and 3rd is a combined one unit, but it is a shared room lease so it will be on a separate lease. Tenant will provide his own hot plate if he chooses too.

Can any investors/landlords advise? Thank you very much!

Dear BP members,

I have a question: I am renting a multifamily unit in New Haven, CT. The 2nd and 3rd floor attic are connected as one unit. I am renting to 3 graduate students on the 2nd floor and 1 graduate student on the 3rd floor attic. The attic is quite large with private space and has a kitchenette with mini fridge, microwave, and kitchen sink. I know the stove is not allowed for legal purpose, but is the hot plate allowed? Hope to get any experienced landlords/investors advice.  Thank you very much in advance!  

Thanks for everyone’s recommendations! I didn’t meant not to take your recommendations. If I came across that, I am very sorry. I am inexperienced on this. I just didn’t feel comfortable about knowing asbestos on the property because I also read some articles on line. There are two different views. That is why I am trying to find solutions. I know what I will do now. I truly appreciated ALL taking time to share your knowledge and experience to help others!!! Thank you all again!

It is in good shape but it does worries me... potential risk, lawsuits etc. even put vinyl siding over it, you still have to disclose it every time. Removing it could increase the value of the house too.

It is in Connecticut. Yes if we remove it or put vinyl siding over the house, the house value can increase. That would be good right?