Profile picture for hdepina

Buying a second home.

Hello,

I understand that when buying a second home a 20% down is required and I would like to know if there is a way I can pay less.

I own a single family that my parents purchased under my name and it's currently my primary residency as well as my parents.

They pay the mortgage but don't qualify to assume the loan, so I am stuck unless they sell. What are my choices as far as buying a second home ?

I would like to purchase a 3 family building and be able to get the extra income from the rent.

 

Thanks,

  • July 10 2014 - South Dorchester
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Answers (5)

You have to be careful when buying a triple decker for income and how it will be financed.  There are soem banks that will allow the proposed rental income as part of your income but think about this way, what if you rent one apt. out but not the other? Or even worse have it rented then the tenant decides to stop paying and then the heating system dies.  
 There is a lot ofor you to consider and the bank as well will put the deal under a microscope before they loan you money.  Still it is worth a shot so you should talk to a mortgage rep and get a straight answer. 
Good luck. 
  • July 19 2014
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So much to consider in this question/equation. I recommend sitting with your Loan Officer, in person, and looking at the different ways the loan can be presented to an Underwriter. Perhaps evidence of your parents making the payments may help provide proof that this is not your primary residence. Perhaps you need to look at the distance of the new 3 unit (hopefully you owner occupy one of the residences)to the other home is not far enough away to be considered a "2nd home".  Perhaps it needs to be closer to a vacation destination, etc. Go figure it out with your Loan Officer because there may be a way to get it done. 
  • July 11 2014
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Hi HDepina,

Actually buying a multi-family as a second home may require more than 20% down. With a SFR, you can get away with 10% down.

Also, why won't your parent's qualify? Email me and we can review.

Thank You,

Jeff
  • July 11 2014
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Profile picture for DebVance
One way would be to look for owner financing.  Sometimes an owner has paid off the mortgage but just doesn't want to be a landlord any longer.  But owner financing is a way for him to get cash flow without being the landlord.  Not everyone will want to do it, but if you keep looking you may find it.  Try for sale by owners in particular, but you could find them in MLS.  You just have to ask if that's something the owner would be interested in doing. 
  • July 11 2014
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Profile picture for GMerino

So are you purchasing a 3 building family and live in one of the units as a primary or are you buying this 3 building family as an investment?

  • July 10 2014
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