Home Buying in Los Angeles>Question Details

melanie4berg, Home Buyer in Beverly Hills, CA

When buying a multi-family property to live in (duplex or house with back apartment) does the potential income factor in to the loan amount?

Asked by melanie4berg, Beverly Hills, CA Sat Jan 26, 2013

Help the community by answering this question:


Yes purchase as owner occupied you get a lower rate and your able to write off your income...Win win situation...I will have a duplex on the market in Los Angeles in the next week..Contact me for more info...#thehousekat.....

0 votes Thank Flag Link Sat Jan 26, 2013
Yes, actual or schedule rents are factor in to qualify for a higher loan than you would when buying just a single home.
0 votes Thank Flag Link Sat Jan 26, 2013
Yes, purchased as owner occupied the income can make up 70% of the mortgage payment. I've done these types of slaes for buyers. You can even go FHA with 3.5 % down.

Let me know if you need any help.
Good luck
0 votes Thank Flag Link Sat Jan 26, 2013
For the bank to consider, usually not as they would like a history of income.
Of course for you, it depends on your financial situation.
Personally, with interest rates as low as they are (almost equal to inflation) and inflation coming(the government is still printing money at an alarming rate) I would get the largest loan possible and pay it back at the smallest amount possible.
0 votes Thank Flag Link Sat Jan 26, 2013
Thanks for your reply CP. I was thinking that by having a rental property would be a good investment, plus as a landlord I'd be right there. This is my first time buying a house on my own so appreciate your advice.
Flag Sat Jan 26, 2013
When you have rental income from the duplex or other house on your property, I would apply as much as I could toward your loan principal to pay it down as quickly as possible. The sooner you do that, the sooner you will be able to refinance and get a lower mortgage payment on the property. Then you will have more disposable income.
0 votes Thank Flag Link Sat Jan 26, 2013
Very good points Clinton, much appreciated!
Flag Sat Jan 26, 2013
The potential income will allow you to offset your Debt to income ratio. It can potentially increase your prospective loan amount. Call me if you need some help. We have a team of associates specializing in such loans.

Christopher Rosiak
0 votes Thank Flag Link Sat Jan 26, 2013
Thanks for your reply Christopher, this helps me to start thinking about possibly going in this direction rather than a regular single family home.
Flag Sat Jan 26, 2013
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