But, if you buy a two-unit home or duplex then you should be able to use that rental income in place providing there is a lease agreement in place.
First of all you will have to qualify for a loan your self and if you rent to your friends its just a plus. The better the house the more rent you can charge. I have a house for sale for $269,900 buy owner /no realitor. IF YOU HAVE MONEY/GREAT CREDIT I would put 20% down so you don't have to pay PMI. Closing cost would be anywere from $2000-$4000 that a bank would roll into the morgage and your payments would be around $1200 a month. I would charge each of your friends $125.00 to $150.00 a week plus 1/3 utility.and you would be on easy street if you have great friend.
If you would like to see it call me at 781-803-3865 23 SEAVER ROAD WEYMOUTH,GOOD LUCK,NORM
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As far as the what you would need for a down payment. You would need at least 3.5% if you wanted to go FHA plus any closing costs that were not rolled into the loan. You will want to speak with your Agent and your lender to work out these numbers to see if this is something you can afford depending on your situation. You will also need at least 60 days worth of reserves which amounts to 3 months of your principal and interest payments on the new loan.
So I would say to speak with a local lender and see what you can afford. If you are working with an agent already I am sure they can recommend some lenders to speak with. I would speak with a couple to make sure you are getting the very best deal.
Good luck to you.
If not and you have excellent credit, 10% is possible,
To get the best rate, 20% or more, and excellent credit.
If you are interested in foreclosures, you can click on the link below to see whats available anywhere in Florida.
LET THE EXCITEMENT BEGIN!!