Buying second 2 unit property

I am refinancing my current duplex to a conventional from an FHA (should close this month)

What are the down payment requirements to purchase a second double and avoid FHA?  I think I saw that FNMA may have less restrictions. I would prefer to not bring 20% to the table but also avoid having a new FHA loan.
  • November 12 2013 - North Park
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (4)

Best Answer


If you intend to occupy the 2-unit you would only need 15% down and YOU DON'T HAVE TO PAY MORTGAGE INSURANCE; many mortgage professionals will not tell you this because they simply are unaware. However, if the properties intended use will be investment there will be a slightly larger down payment. It's important to discuss all aspects of the property to ensure it will sail through underwriting which is currently 1-2 days. If you'd like to discuss your upcoming purchase in greater detail and weigh out some cost efficient options please don't hesitate contacting me directly. My information can be found within my profile.

I also wanted to clarify some information posted by others...

@Ryan Walley:
Yes, 5% financing is available for conventional loans (even 3%), however, this is only for SINGLE UNIT's; single-family, condos, and townhomes. A duplex, considered a 2-unit in the banking world, will require a larger down payment; Freddie Mac set's the minimum @ 20%, Fannie Mae @ 15%.



Kindest regards,

Paul F. Marzolla
Sr. Mortgage Advisor


  • November 13 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The thing about buying second properties is that lenders will usually charge higher rates and down payment because it is riskier to fund you this loan. You might have to stick with 20% but there may be some lenders like myself that can do less depending on your finances. Either way, I recommend that you speak with a lender like myself that would be happy to speak with you. Well I hope this helps, if you have any other questions or need a loan please contact me through the information on my profile page. I hope this helps and good luck!
  • November 13 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Hi Pollo

I am a realtor and not a loan officer, so they would know for sure (a local WNY lender) but I do know you can do a conventional loan with less than 20% down.  You will need to pay PMI but it can be done.  It is dependent on your credit score, I believe.  I am working with a client who is putting 5% down and using a conventional loan for their purchase. 

Also, FHA will not allow you to buy a non-owner occupied property anyways.

Congrats on investing in Buffalo, and your future!

Ryan Walley
Nothnagle REALTORS
Assoc Broker
  • November 12 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Call this lender today-
[deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • November 12 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.