Financing in Seattle>Question Details

shades7676, Home Seller in Seattle, WA

Any lender service owner occupied 4plex from buyer downgrading from home and keeping home?

Asked by shades7676, Seattle, WA Thu May 2, 2013

Someone is trying to buy my multifamily home. They intend to be owner occupied and I'm even holding an apartment open for them at a daily loss while we close. I just found today that their loan provide will not give them an FHA loan as owner occupied because they intend to keep their current home. (apparently this was a common fraud committed prehousing bubble). Is there any way to convince a loan officer they will truly be owner occupied and get them their FHA loan, so I can complete this sale? Are there any portfolio lenders that are more likely to service this loan?

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I can see why you're asking for a portfolio lender but that doesn't make things easier.

If the buyer has a normal home in the surrounding areas, you'll have a hard time getting any lender to approve. Often, portfolio lenders are tighter.

Fannie Mae has a loan program called My Community which allows a 2-4 unit purchase with 5% down. This may be a good alternative but you'll have to do some convincing to the underwriter as to why they'll occupy.

In addition to Washington Federal, US Bank and Union Bank are also portfolio lenders. You can use some of the contacts given below or email me if you want another referral.
0 votes Thank Flag Link Tue Oct 15, 2013
Kary is spot on. As a portfolio lender, Washington Federal is more conservative with 3-4 plexes. We require at least 20% down for owner occupied properties. If you have minimal down, if you can qualify, FNMA/FHLMC or FHA is the better option. There may be some other portfolio lenders that can take this on. Good luck on your project.
0 votes Thank Flag Link Fri May 3, 2013
Get in touch with your nearest branch of Washington Federal Savings. WaFed is a portfolio lender. Any lender is going to want some assurance that your buyer is really going to follow-through and move into the 4-plex. It may be a challenge for other lenders, besides FHA. Good luck!
0 votes Thank Flag Link Thu May 2, 2013
I don't believe FHA allows for 4 units, but if any lender can work something out Washington Federal can. Call Jack Durney at 425-672-6701.
0 votes Thank Flag Link Thu May 2, 2013
The problem with a portfolio lender is they might require a higher down payment than FHA, but you can try Washington Federal.
0 votes Thank Flag Link Thu May 2, 2013
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