| New Home Buyers should consider buying Owner | | | | Borrowers Income: $48000 per annum Borrower |
| Occupied Multi Family (2-4 units) with an FHA Loan. | | | | Monthly Debt |
| For discussion purposes the following suggestions | | | | - Monthly Auto Loan Payment :$250 |
| assumptions are made in this article. | | | | - Minimum Monthly Credit card Pmt $150 |
| - The Duplex/Triplex/Four Plex will be owner occupied | | | | Borrower FICO: 620 Down Payment:3.5% |
| for primary residence | | | | Qualified Purchase Price :$320000. |
| - This means one of the units needs to be occupied | | | | So with a 3.5% down payment a borrower can qualify |
| by the borrower. | | | | to purchase a 4 plex worth $320000.. |
| - Credit score assumed is over 620 + Fico | | | | Conclusion |
| 75% of the rent is added to borrowers income when | | | | This is an excellent way to build residual income for |
| calculating the loan qualification.This means you are | | | | retirement. After the loan is paid off the rental income |
| now benefitting with the rental income to qualify for a | | | | is for you to keep.As the years go by the rental |
| larger loan. The down payment needed is still 3.5% | | | | income will keep rising and the loan will keep reducing |
| .Closing costs credits can be paid by seller upto | | | | to a point where you just have the income with no |
| 6%.Collections/chargeoffs may be OK as long as | | | | mortgage to pay. |
| FICO is over 620 and Desktop underwriter approves | | | | We write articles covering a wide range of topics ,on |
| the file.Please read other articles on FHA Home Loan | | | | a regular basis , on Loan Qualification for FHA Home |
| Income calculation,FHA Home Loan credit requirements | | | | Loan,VA Mortgage Loans,USDA Home Loans and |
| and calculating FHA Home Loan front and backend | | | | Conventional Home Loans.The articles are available on |
| ratio on our web site. Example : Property : Four | | | | our website and |
| Plex Rent from Units : | | | | provides a Proprietory Affordability Calculator. It |
| - Unit1: owner Occupied | | | | matches your profile against the programs our lenders |
| - Unit 2:$800 | | | | offer and instantly communicates the PreQual |
| - Unit 3:$700 | | | | amount and the Purchase price you are eligible for. |
| - Unit 4:$600 | | | | |