Own a four family home with 2.25% down payment.
You can purchase a four family home, live in one unit and then rent out the other 3, and you can do this with only a down payment of 2.25%.Â How can this be accomplished, with all of the restrictions we are seeing in the mortgage market?Â The answer is the old reliable Federal Housing Administration or commonly known as FHA.
If you purchase a $150,00 four family home, all you need is $3375 for your down payment.Â Your mortgage payment with taxes and insurance would be approximately $1300.Â If each apartment rents for $500 per monthâ€¦you are getting paid $200 per month to live there!Â Not a bad deal.
In addition FHA will allow you to include in your mortgage an overwhelming majority of your closing cost!Â On the above scenario this can be as much as $9000 or a maximum of 6% of the loan amount.
If you were to purchase the same home with a conventional mortgage, you would be required to have a down payment of 25% and only allowed to include $4500 or 3% of your closing costs into the mortgage.
Remember FHA is not just for first time homeowners, the only stipulations is that you may only haveÂ one FHA mortgage at a time.
This post was provided by:
Sam Geraci, Hunt Mortgage
5400 Broadway | Lancaster, NY 14086
(716) 250-0825 x3128