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Beth, Renter in Turnersville, NJ

Problem financing a duplex that also has a small cottage on the property. What to do?

Asked by Beth, Turnersville, NJ Sun Apr 29, 2012

My son, his wife, my husband and I found a perfect property but are being told financing will be a problem. The home is a duplex but the problem is that there is a small cottage on the property also (1 bed, bath, kitch). The home is a duplex but the problem is that there is a small cottage on the property also (1 bed, bath, kitch). We are being told the only financing we can get would be conventional with 20% down. Why would having the cottage there be a reason we could not go FHA or something else?

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Voices Member’s answer
Call me or send me an email ay gmccollam@gyleshomes.com and I will give you the name of a good mortgage rep who can tell you if there will be a problem with financing. I don't see an issue going FHA, but my mortgage rep would be a better qualified person to answer your question.
Web Reference: http://www.gyleshomes.com
0 votes Thank Flag Link Sun Apr 29, 2012
We got this information from the realtor. She had someone else interested in the property and the only financing they could get was the conventional route. We plan on this property being totally owner occupied so would we qualify for FHA? or is it that they don't know if you will in the future rent part out? Just wondering whether to pursue this or not if it is going to be a lot of trouble and issues.
0 votes Thank Flag Link Sun Apr 29, 2012
The best person to answer your question would be the person that told you it would be a problem getting financing. Any other answers here would just be conjecture on everyone's part. Just because there's a cottage on the property does not mean that the potential buyer will automatically be renting it out. Be sure to challenge any answers you get that you don't understand or do not fully answer your question. Speak to a mortgage rep and have him give you details and explain why. If you don't have a mortgage rep, give me a call at 856-318-9098. I have a list of very good mortgage reps that take their time to fully explain things.
0 votes Thank Flag Link Sun Apr 29, 2012
The only reason I see is that an FHA mortgage is for owner occupied property and they may be looking at this property as investment protntial. Meaning that the property is not just owner occupied with 2 additional units as rental income.
0 votes Thank Flag Link Sun Apr 29, 2012
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