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Financing in Cypress : Real Estate Advice

  • All124
  • Local Info9
  • Home Buying40
  • Home Selling4
  • Market Conditions6

Activity 2
Thu Mar 8, 2012
Rob Weber answered:

Investment property by nature (any property that you don't intend on living in) is riskier than a property you'll put your family/belongings in.

If you had two properties and lost half your income, which house would you continue paying the mortgage on? Obviously the one you live in, hence why the rates and down payment requirements of an owner occupied home are lower than investment properties.

As to how much of a down payment and how much higher rates, that'll depend on your credit profile, down payment and property type (1-4 units).

Speak with a knowledgeable loan officer about your options and go from there.
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Fri Mar 19, 2010
Rudy McDowell answered:
Hi, Erik

Yes, so long as the seller is willing to pay what's called seller concessions. With FHA you can get up to 6% of the sells price in concessions. However, your mandatory min. down payment of 3.5% must come directly from you out of pocket or as a gift from a family member, your church, or a HUD recognized down payment assistance program.

With regards to the seller concessions, the seller can also increase the sale price accordingly to accomodate you if they are unable to do it any other way. Simple example: 100,000 sale price X 6% = 6,000 in seller concession. If the seller has to get 100,000, he/she/they can then increase the sale price to 106,000. Hope this helps.
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