Home Buying in Boston>Question Details

Jdr, Home Buyer in Boston, MA

Seeking an FHA loan on a 2-family | Want to make sure I'm qualified

Asked by Jdr, Boston, MA Tue Apr 10, 2012

My wife and I have been saving as our family has grown in order to move in to a bigger space.
We set our target on an owner occupied multi-family as we like the security another income coming in offers.

We have a condo (in my name only) that is currently in an adjusted ARM mortgage. We have little to no equity in this condo due to market changes. I don't believe it's an FHA loan.

We also are on the deed and ownership of a 2 family property out of state with another couple. We are not on that mortgage.

We have a good income stream as well as reserves, however we likely need an FHA downpayment to get in to the houses/neighborhoods we like. Good news is our condo payment is reasonable as I believe we cannot count on it as rental income for financing.

Can anyone on this board offer advice and/or bank/broker information for what could arguably be a more complicated deal here.

And adding fuel to the fire, we are due to see what we think could be "our house" this week.

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Bryant Slade’s answer
If you're looking to buy a home, but are not able to get bank approved financing due to bad credit, or low credit, then I can help put you into a new home. I'm a Wholesale Real Estate Investor, with properties in all the lower 48 states. You don't need good credit with me, in order to move into that nice house that you've always dreamed about. If you have the CASH! I have the property that's right for you, plus it comes with over 25% Equity left in it, unlike what you'd get dealing with a Realtor. Let me know the area that you're looking to move into and let's get you into that new home, NOW! Call, or Email me, Bryant Slade (717)248-4632
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0 votes Thank Flag Link Sat Apr 21, 2012
how much FHA loan get I get on a 2-fam home with 10% down and 751.500 loan
0 votes Thank Flag Link Sat Apr 21, 2012
It appears that I've connected with a good mortgage broker. That's the good news, bad news is our credit is just below 700 and therefore we don't qualify for FHA. Based on the PMI rates for FHA, we would not have gone that route anyways.

The challenge now is to find an option at 5-10% down ideally that we qualify for.

Any suggestions from this board? I'm not really interested in chasing down "maybes" with multiple brokers so I need a little info if you have a suggested answer.

Thanks in advance, this board has already been helpful.
0 votes Thank Flag Link Wed Apr 11, 2012
Hi, Jdr.

700 isn't a problem at all for FHA financing. Even if your score is in the low 600's we may be able to boost your score enough to qualify by making a few simple moves. No worries there.

I know you're not too excited about FHA's PMI, but for down payments of less than 20% on multi family homes, FHA is still the way to go. And since 2007, the PMI on all new loans has been made tax deductible.

I'm not a big fan of "maybes" myself. Please give me a shout @ 781-258-1293. I can likely tell you within 15 minutes what you can qualify for. And if all looks peachy, then we can gather up your supporting documentation and have it reviewed by an underwriter. And once underwriting has green-lit the file, then we can issue a pre-approval for you. And of course we can talk numbers along the way too for any properties you're interested in.

BTW, I have rates in the 3%s and I'm local so I can meet with you guys in person. Give me a call. 781-258-1293.


Flag Mon Apr 16, 2012
You are not going to find a FNMA loan with less than 20% down. PMI is not available for multis. Our FHA rate is below 4.0%
Flag Sat Apr 14, 2012
Moy, great info here again, thanks. Our score is just BELOW 700 which is what we are being told is the problem. I also think there is an error on our report which I could provide documentation for immediately. Anything over low 4% interest rates though and I think this specific house is a deal breaker.

Do you have FNMA programs that qualify under 700 and with lower money down? If so, let's talk.
Flag Thu Apr 12, 2012
Must be a typo. Did you really mean a 700 credit score? That should be high enough. for an FHA loan. We will do them as low as 620.. Even though the mortgage insurance is more expensive for an FHA loan, you will start with a lower FHA rate as compared to a FNMA loan which has pricing hits for a 2 family and credit score lower than 720. In the end, your payments should not be all that different. This is not a maybe!
Flag Thu Apr 12, 2012
It looks like you have some options below.
Let us know how you made out.
Did you find a good real estate pro?
Were you able to finance?

(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.)
0 votes Thank Flag Link Wed Apr 11, 2012
Hi there.. I think i can help... give me a call 617-340-3986
0 votes Thank Flag Link Tue Apr 10, 2012
Sounds like the typical deals I work with all the time. You are right, in terms of not being able to count on the rent from the condo. The underwriters will also want to see that you have enough reserve funds after closing to support the two mortgages. You will want to make sure that the property will meet the FHA minimum property standards. I can send you my checklist if you want. If the property needs work , you might consider an FHA 203k purchase/ renovation loan.

But before you get too far into this, pause and do a self check. Take a deep breath and ask your self, Do you really want to be a landlord? Its easy when things go right. But I have also experienced it when things go bad,
So after you have thought this whole thing through and you still want to move on, then charge on.
0 votes Thank Flag Link Tue Apr 10, 2012
Great advice Moy. I'm already a 11 yr plus landlord so I know what I'm in for there. I've checked the guidelines and we qualify all the way around as does the property. We are on our way so I appreciate all the quick responses from the group here.
Flag Tue Apr 10, 2012
would be happy to help. contact me through my profile.
0 votes Thank Flag Link Tue Apr 10, 2012

If you would like to contact me click my profile and send an email or give me a call. I would be happy to discuss your options for financing offline.

Best of Luck,

0 votes Thank Flag Link Tue Apr 10, 2012
Please contact a qualified mortgage broker in Boston.
here is one:
Christina Longo
Sr. Loan Officer
Prospect Mortgage
420 Boylston Street
6th floor
Boston, MA 02116
NMLS # 79510

617 236 7764 (o)
978 886 9359 (m)
877 273 0252 ( f)
0 votes Thank Flag Link Tue Apr 10, 2012
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