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BUILD
YOUR FUTURE WITH RENTAL INCOME
LEARN HOW TO QUALIFY FOR
FHA OWNER OCCUPIED
MULTI-FAMILY HOMES
(Under Construction, More
Coming Soon)
There are
many individuals who when they start seeking
to buy a home begin initially to look for a
one or two family. When they sit down to think
about the costs involved they realize it may
be a better idea to buy a three or four family
(if they are good property managers and are
prepared to deal with the pitfalls in having
tenants) and have the rental income to help
with mortgage payments along with the
possibility of more income in the future as
rents continue to rise in the tristate area.
Basic FHA Multi Family
Qualifying Guidelines
1. 85% of gross monthly rental
income is added to borrowers regular (salaried
or employment) gross monthly income to
determine total monthly gross income. Example:
If 3 of 4 apartments
are going to be rented for $1000 a month for a
total of $3000, the $3000 is taken an
multiplied by .85 to come up with a number of
$2550 (85% of 3000). The $2550 is then added
to the borrowers regular gross monthly
employment income and FHA debt to income
ratios are applied to determine the maximum
payment a borrower can qualify for. (To
read more about debt to income ratios click
here) Example:
Mr. and Mrs. Jones
together have a gross monthly salary of $6000
a month, the additional $2550 is added to give
them a total of $8550 ($6000 +$2550).
When the final number is arrived at ($8550),
FHA guidelines use a debt to income ratio to
determine how much a borrower can afford. (To
read more about debt to income ratios click
here)
2. Property must be able to
carry its own mortgage payment if fully rented
(in case of default). The number used to
determine whether a property can be self
sufficient is 75% of its gross monthly
income. Example: If a fully rented 4
family has an income of $1000 per apartment
for a total gross income of $4000 a month, the
final mortgage payment cannot exceed 75% of
$4000, which comes out to $3000.
Note: Because we receive a number of calls each week
from buyers who are interested in purchasing
four family homes (or have switched from
seeking a 1 or 2 family) we have decided to
start, as a service to those borrowers, a list
of 4 family homes provided by tristate area
realtors (as well as some 2 or 3 family.
Multifamily housing of any type that falls
within FHA loan limits is becoming harder to
find in New York and its neighboring areas).
Real estate values in New York and surrounding
counties in New Jersey and Connecticut have
skyrocketed in the past few years and
therefore it is harder to find 4 family homes
in good condition that fall within FHA loan
limits (558,000 for a four family in most of
New York and the surrounding areas, click here
for a more detailed list of FHA loan limits)
This list is being started as a way to help
people who are interested in buying a four
family. NYMC is not a realtor and we make no
representations or warranties on the following
homes, nor do we collect a fee or any other
form of compensation for listing them here. This list is here because people
have asked for it and to help as a starting
point for your home search. Buyers should
inspect each property thoroughly and perform
their own due diligence. Realtors who have
quality 4 family homes (we will consider
select 2 or 3 families as well, most of the
requests we receive from borrowers are for 4
family homes) and would like to have them
listed here should email contact@lowratesfha.com
with their name, phone number, property
description, asking price, and pictures.
(Please mention overall condition as well, if
property is in need of rehab, etc.)
More properties coming
soon....
FHA is a strictly FULL
DOC owner occupied program, if you are an
investor and need non-owner occupied financing
or need a NO INCOME CHECK/LIMITED DOC mortgage
NYMC has plenty of other programs to offer, give
one of our loan specialists a call.
Other
NYMC Loan Programs
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