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Multi-unit Mortgage Inquiry?

I have read that many multi-unit properties need a 80/20 mortgage.  If i am having my parents(good credit) purchase a multi-unit property (3 units) for nearly $550k and I am signing a lease for one unit and there is already one unit rented for one year, are there available mortgages for 10% down? and if so what would be the typical rates? 
  • September 19 2013 - Chicago
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Answers (6)

You may qualify for an FHA mortgage depending on if your parents are going to live in the builiding or co-sign with you.  Call or email me with more information.

Best regards,

Patty Harrison
Smart Mortgage
  • September 25 2013
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Non-owner occupied is a problem with a small down payment. Why aren't you attempting to get the mortgage with them? If it were owner occupied, then many more options would be available.
  • September 20 2013
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Are your parents going to live in the other unit?  FHA financing will allow for purchase of three and four unit properties if one unit is owner occupied.  However, the qualifications are a little "hokey" in that the borrower must be able to qualify for the entire mortgage payment (PITI) without credit for any rental income.  Ironically, rental income can be used when purchasing a duplex unit.

All my best,

Deborah
NMLS #279125
WJ Bradley
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  • September 19 2013
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Profile picture for Matt Laricy
Most of the time its 25% for these types.
  • September 19 2013
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Profile picture for Andrew Malak
There is a mortgage company that might take 20% so call me and I'll give you the info. No for 10%.
  • September 19 2013
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If the parents are buying it as an investment, not owner occupied, and it is 4 units or less they might need to put 25%down not just 20%, but you need to check with lenders as they all are not the same. My web site has some lender references. You cannot get an investor loan with 10% down.
  • September 19 2013
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