How to Buy a Multi-Family 2-4 Units Owner Occupied character With 3.5% …


New Home Buyers should consider buying Owner Occupied Multi Family (2-4 units) with an FHA Loan. For discussion purposes the following suggestions/assumptions are made in this article.

The Duplex/Triplex/Four Plex will be owner occupied for dominant residence This method one of the units needs to be occupied by the borrower. Credit score assumed is over 620 + Fico

75% of the rent is additional to borrowers income when calculating the loan qualification.This method you are now benefitting with the rental income to qualify for a larger loan. The down payment needed is nevertheless 3.5%.Closing costs credits can be paid by seller upto 6%.Collections/chargeoffs may be OK as long as FICO is over 620 and Desktop underwriter approves the file.Please read other articles on FHA Loan Income calculation,FHA Loan credit requirements and calculating FHA Loan front and backend ratio on our web site. Example: character: Four Plex Rent from Units:

Unit1: owner Occupied Unit 2:$800 Unit 3:$700 Unit 4:$600

Borrowers Income: $48000 per annum Borrower Monthly Debt

Monthly Auto Loan Payment:$250 Minimum Monthly Credit card Pmt $150

Borrower FICO: 620 Down Payment:3.5%

Qualified buy Price:$320000.
So with a 3.5% down payment a borrower can qualify to buy a 4 plex worth $320000..


This is an excellent way to build residual income for retirement. After the loan is paid off the rental income is for you to keep.As the years go by the rental income will keep rising and the loan will keep reducing to a point where you just have the income with no mortgage to pay.

Read a wide range of topics,on a regular basis, on Loan Qualification for Home For Sale,FHA Loan,VA Loans,USDA Loans and traditional Loans.The articles are obtainable on the website and provides a Proprietory Affordability Calculator. It matches your profile against the programs our lenders offer and immediately communicates the PreQual amount and the buy price you are eligible for.

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