Because so many factors can affect your purchase I am going to put it simply, David Hanna gave you some great advice on break down with FHA loans. Because we do not know what your down payment situation is and whether you may have to taka a commercial loan if your purchase is over 3 units, I will direct you to who I feel will step you through the ABCâ€™s of lending; Tracey Campagna of guaranteed Rate her phone number is 773-383-1405. What I like about Tracey is she will take the time to explain everything to you in way that is easy to understand. I have known Tracey to go to a property personally to see what the hold up is in order to best service a purchaser. Another plus with going with a company like guaranteed Rate is they fund their own loans so once underwriting is complete you are good to go and not waiting on a third party.
Best of Luck,
Manuel Brown, Broker
In some neighborhoods the 2 and 3 flats are still undervalued and were also prone to a higher foreclosure rate. You can find buildings that need nominal work and will positively cash flow if you work with a good agent and know the areas you invest in.
Apply free online and get a $500 closing credit.
The Federal Savings Bank
Senior Vice President - Mortgage Lending
Do you have a ballpark purchase price you are thinking of? If so, what do you have for a down payment and closing costs, and how much would you have in reserves?
A 2-4 unit building is residential, whereas about 4 it is commercial from a financing stand-point. it is not true, as someone mentioned, that you cannot finance multi-family buildings any more. There are certain cash-out restrictions, and you can't do it as a no income verification loan (unless there is a regional lender who will allow it), but you can finance a 2-4 unit as either a conventional or FHA loan, depending on certain other circumstances as I mentioned above.
I am surprised that the only local loan officer gave you no information, just a "call me". Why not ask around for referrals from a friend or business associate for a referral? I would recommend a mortgage banker who can also broker, so that you have the most options.
Bill J Deligiannis
First Centennial Mortgage
Be prepared to provide income, credit and asset information.
Keep in mind a building with 5 units or more requires a commercial loan.
Neena L. Vlamis
A and N Mortgage Services, Inc.
1945 N. Elston Ave.
Chicago, IL 60642
P: 773.305.LOAN (5626) ex. 104
Company ID #19291