Home Buying in Philadelphia>Question Details

kphilly3, Home Buyer in Philadelphia, PA

First time buyer looking to buy a home and owner occupy it while renting the other bedrooms out to friends. Which mortgage type?

Asked by kphilly3, Philadelphia, PA Sun Mar 31, 2013

I'm a first time buyer looking to buy a home and owner occupy it while renting the other bedrooms out to friends. Is there a particular mortgage type that is best for this type of transaction? I'm looking in the fairmount and graduate hospital areas of Philly.

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Don Sherman’s answer
There isn't a special mortgage needed in this situation.You will be occupy the home & the city allows up to 3 unrelated people to live in a single family residence. You can use an FHA mortgage or conventional mortgage.
For more information and discuss you needs in the home,please contact me
Century21 Advantage Gold
1 vote Thank Flag Link Sun Mar 31, 2013
I would be more than happy to assist you with your new home purchase. I can be reached at 215-327-8104.
Kathy Hanigan, Broker
0 votes Thank Flag Link Tue Apr 2, 2013
Hello Kphilly,

There are no specific mortgage types for what you are doing but there are many different mortgage options and knowing your options can save you a lot of money. I'd be happy to explain what you can and can't do.

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
NMLS ID 143960
0 votes Thank Flag Link Mon Apr 1, 2013
Hi K, I sell in Grad Hosp & the Art Museum. No special mortgage available -- and you can't count any rent your roommates may pay you as income yet -- but if you need it, perhaps you can count their income, but it would require having them on the mortgage. Just an idea. It's always risky to buy real estate with somebody, but we can go over the pros and cons.

Also, depending on how long you plan to buy and hold, I have been recommending a 5% conventional mortgage a lot lately. We can discuss the benefits of this product in person.

Can I buy you a cup of coffee one day/evening this week? My office is on Rittenhouse.

Eric Axelson, Associate Broker
Kurfiss Sotheby's International Realty
856.979.5967 m/txt
Web Reference: http://SellingPhilly.com
0 votes Thank Flag Link Mon Apr 1, 2013
The best thing to do is speak with a mortgage lender. They can pull your credit, look at your job history and income. Typically most first time home buyers use FHA but there may be a better loan program for you depending on the above factors and your down payments.

However, keep in mind that you must qualify for the mortgage using your own credit. They will not allow to use roommate rental income to qualify you. Not sure if this will limit what you qualify for.

Good luck!
0 votes Thank Flag Link Sun Mar 31, 2013
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