I think that you will need to buy alot of money as a down payment since they're next door to each other.

Look at this blog it will help you to learn more about your situation.
I've got most of my answers there as well.

Good Luck.

I refer people to FHAloanagent.com. Find your FHA questions with a qualified FHA lender.

Hi Jim Michele Pat,

If you buy together, you are able to afford more based on your conjoined income. If you plan to occupy one unit each, you should simply apply for the loan with an experienced Loan Officer that specializes in FHA loans. Whether one buys and shows the second unit as rental or you buy together, you want to make sure you have your figures right. The FHA loan has a 3.5% downpayment up to a 4 unit so it is definitely a great option for you. You can actually google a mortgage calculator and put in both scenarios to decide the best option for you.
Good luck to you both. I hope all works out well for you.

If the 2 flat is a property with one property tax ID number (PIN), there will not be the possbility to have separate mortgages on it. While the benefits of a FHA mortgage is the low down payment, there are strict requirements for debt to income (DTI). Knowing this, Jim Michele Pat, I suggest you and your friend(s) commit and spend time with an experience mortgage professional to prequalify the purchase based on one of these two scenarios: (1) one borrower with individual income + rental income from other unit, (2) two borrowers with both incomes.

If you have not committed to a mortgage professional, I welcome the opportunity to help you.

I think one of the main things you guys do have to do is have your lawyer draw up some sort of contract between yourselfs. What happens if one of you guys looses your jobs and cant make payments? What happens if one wants to sell down the road and the other doesnt? There are a lot of things to consider when buying a place with friends.
As for a loan, call up a mortgage broker and have him explain the option you have. Best of luck!

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlaricy@americorpre.com
708-250-2696

Jim/Michele/Pat

Those are great questions...
FHA is a great option because you both can purchase a multi-unit property if you both live there.
The down payment is only 3.5% and the monthly PMI is very low.
You are correct that the maximum loan amount for a 2-flat is $524,850.
If you were to buy a 3 or 4 flat you can even qualify for the loan using potential rental income.
If you have any further questions about the process or getting a pre-approval letter let me know.
I can get you a pre-approval letter sometimes with in a couple hours.
Steve Smither
Ardain Mortgage
ssmither@ardain.com
847-942-5151