Financing in 01752>Question Details

Rebecca, Other/Just Looking in Massachusetts

own 1 condo in a 2 unit converted house. Other unit is vacant. Can I finance whole house as a 2 or single family instead of a complex or 2 units?

Asked by Rebecca, Massachusetts Mon Mar 14, 2011

Unit is owned by the 'developer,' is in disrepair, and hasn't been sold (4yrs ). I don't have 20% down I'd anticipate needing to purchase an income property. Perhaps reconvert to a 2 family prior to financing?

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Deb Frank’s answer
If the property is presently zoned as a 2-family, then you would obtain financing on the entire property as a 2-family home. If the property was legally converted into condos, then you you could purchase one unit as owner-occupied and the other unit as an investment property. Alternatively, you could purchase and convert the property back to a 2-family with a rehab. loan (examples are the FHA 203(k) and the Fannie Mae HomeStyle loan)
0 votes Thank Flag Link Wed May 18, 2011
How is the property zoned? How is the title held? That would make a difference.

David Stein
Mortgage Banker
858-337-9744 Cell
davbstein@yahoo.com
0 votes Thank Flag Link Sun May 15, 2011
How is the property zoned? How is the title held? That would make a difference.
davbstein@yahoo.com
0 votes Thank Flag Link Sun May 15, 2011
You'd need to convert the condo back to not being a condo, as you can't finance two condos with a single traditional mortgage (a blanket mortgage, yes, but those aren't very common these days). Once it's converted into not being a condo, it'd essentially be just a big old house, and if it has separate entrances/kitchens/wall separating the two units, then odds are you could consider it as a duplex and then get a traditional mortgage that encumbers both units.
0 votes Thank Flag Link Sun May 15, 2011
I don't see how you could unless you acquired the other unit from the 'developer'. Once you owned both units, you could then finance the whole thing as a two family or as condos.
0 votes Thank Flag Link Sun May 15, 2011
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