Posted on: 28th Sep, 2010 08:59 pm
Hello,
I have an accepted offer on purchasing a duplex. The price is 125,000. I would rather not put down 20%, aside from an FHA owner occupied loan, what are my options for putting down less? I don't want to live in the place, but if this is what is needed to be able to put down less, then I would do this. If I do go the FHA route with 3.5% down, how long would I need to live in the place? what happens if I live there to get the low 3.5% down payment and then move out? I'm located in California. Thank you!
I have an accepted offer on purchasing a duplex. The price is 125,000. I would rather not put down 20%, aside from an FHA owner occupied loan, what are my options for putting down less? I don't want to live in the place, but if this is what is needed to be able to put down less, then I would do this. If I do go the FHA route with 3.5% down, how long would I need to live in the place? what happens if I live there to get the low 3.5% down payment and then move out? I'm located in California. Thank you!
Hi ethan_js,
In case of a FHA loan, you'll have to provide a down payment of 3.5% - 5% and in case of a conventional loan, you'll have to put down 20%. If you put down less, you'll have to go for a private mortgage insurance. You can take out a FHA loan in order to purchase an investment property. However, while taking out the mortgage, you should let the lender know about your plans to rent the property. If he has any objections, he will let you know about it.
Take care.
In case of a FHA loan, you'll have to provide a down payment of 3.5% - 5% and in case of a conventional loan, you'll have to put down 20%. If you put down less, you'll have to go for a private mortgage insurance. You can take out a FHA loan in order to purchase an investment property. However, while taking out the mortgage, you should let the lender know about your plans to rent the property. If he has any objections, he will let you know about it.
Take care.