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The purchase price of the triplex or 4-unit is going to dictate the answer to your question. Right now the conforming loan limit for a 3 unit property is $645,300 and a four unit is $801,950. There are temporary high balance loan limits that exceed these loan amounts, but they are expected to expire....I believe at year end, so unless you are going to get into contract immediately, you probably wouldn't want to rely on that. Unfortunately, these products are going to require 25-30% down even if you are going to be living in one of the units. Assuming you are living in one of the units and have exceptional credit, good documentable income, and job history you would be looking at roughly 5% paying a point. If this is a pure investment with the same assumptions you would be looking at roughly 5.5% paying a point. Obviously to get specifics I would need more information but that gives you an idea at least of the variance between the two and also prepares you for the fact that you would have to come in with more money down. If you are looking at a 3-4 unit over the conforming loan limit........that is going to require aLOT more information as it will most likely be a portfolio product. I hope this helps, feel free to contact me directly with any further questions.
Also, if you are not going to live in it, typically they require at least 25% down.
Hope this is helpful. Call me or email me if I can help with anything else.
Barbara Robbins-Olexa, Broker, e-Pro Internet Certified,, SRES(R)
L B Brokerage
If it is an inverstor home I need 25% down and the rate today is 5.375% and 1 point 5.47APR
I am a direct lender.
Lic by the CA dept of Real estate #01080071
I don't want to step on anyones toes. It is obvious everyone that takes the time to comment and try and help has the best of intentions. However, I have to clear one thing up. The conforming loan limit changes between a one unit, two unit, three unit, etc. Below are the real loan limits. 417,000 is only the conforming loan limit for a 1-unit property. I hope this clears things up a bit. There are also hits for a 3-4 unit, which I accounted for when giving you an estimation of rates.
Here is the link to Fannie Mae's website to support my comments
Rates as of September 24, 2009
Equal or less than Greater than
1 Point 1.0 Point
30 Year Fixed 4.875% 6.375% (20% Down)
15 Year Fixed 4.375%
5 Year Fixed 3.875% 5.250% (20% Down)
30 Year Fixed FHA 5.000%
Between $417,000 and $729,750
30 Year Fixed 5.250%
15 Year Fixed 4.625%
30 Year Fixed FHA 5.000%
All rates assume one points with a minimum 740 FICO score, 80% LTV, Full Doc Purchase/Rate and Term refinance, SFR only. Other programs are available. This is an estimate of rates at a point in time as they change constantly. Rates and programs vary depending on the individual circumstances of each client. Please call me for a custom quote.
Please call me if you would like me to help you find your next property~ I look forward to hearing from you, Lesley Harris, Realtor (714) 594-4149 email@example.com
Call a direct lender and apply for a mortgage. It's the only way for you to get an accurate interest rate figure based on your income, assets, debts, etc., as well as getting the total amount you may qualify for. Direct lenders are; Wells Fargo Bank, Bank of America, JP Morgan Chase, Citibank, etc.
Every applicant is unique and there is no blanket (one size fits all) interest rate answer for you. Good luck!