“High-Cost” Local Limits:

Any area where the limits exceed the floor is known as a “high cost” area. In areas where 125% of the median house price exceeds the 175% limit of $729,750 for a 1-unit property, the mortgage limits are set at the 175% amount, i.e., the “ceiling,” as follows:

One-Unit $729,750
Two-Unit $934,200
Three-Unit $1,129,250
Four-Unit $1,403,400

Google: fha loan limits for a 4 family

From there you'll find some info to help you.

Sat May 24 2008, 07:17

With the credit market being so restricted right now, you will not find a lender willing to finance 90%. You should speak with a couple of different mortgage brokers to see what options they have for you. Some lenders may even require 25-30% down right now if the mortgage is over $729,000.

Mon May 19 2008, 12:53

I dont think there is a single lender out there willing to lend 90% on a 4 family. If you find one, please let me know. You will need 20% down.

Thu May 15 2008, 20:21

Brett,
You will definitely, need to get with a lender. With most investment properties banks are now requiring 20-25% down. With you residing in one of the units it is a different ball game. You need to furnish all current information for the 4-plex, rents, utilitiies, insurance, everything that will affect your bottom line. I would also like to add that you should definitely see a real estate attorney, you need to know how to hold title, whether you should form a corporation or not.
I wish you the best!

Charles Coachman

Tue May 13 2008, 19:01

Impossible to say. A key question is what the rents are for the other 3 units. You'll have a $900,000 mortgage. I don't know what taxes and other expenses run where you are, and you didn't say whether the units are individually metered. And the numbers I'm throwing out are very, very crude. But you'll get the basic idea.

Let's say your income would be enough to handle a $300,000 mortgage. So you've got to cover the remainder--$600,000--from rental income. Let's say with all expenses you're obligated to pay $5,000 for that $600,000 portion of the mortgage. And let's assume a 25% vacancy factor. Your lenders will. So you've got to bring in maybe $6,600 a month. So the question is: will each of the other three units rent for $2,200 a month? Is there a history of them renting for that, or more? If so, you may stand a good chance of finding a lender.

Again, that's a very crude analysis. But it may point you in the right direction. Talk to a good mortgage broker for more details.

Tue May 13 2008, 16:53

You really need to speak with a mortgage broker about this. If you do not have someone, I would be happy to make a referral...contact me offline at Gail@GailGladstone.com

Tue May 13 2008, 16:50

I have forwarded this question to my Mortgage Banker
He should be contacting you soon or you can reach him at 917-658-6191

Henry

Tue May 13 2008, 16:46