The Differences Between 100% Financing On A Duplex & Single Family Home?
If it possible to get 100% financing on a Duplex.
Currently looking into 100% financing on a duplex. The Mortage broker that is currenlty looking tells me that because it is a duplex things get a bit more complicated as far a interest rates are higher and taxes are more. Can anyone tell me if this is true? The broker is also charging me 2% on his work. Is this to much or what? I am a first time home investor that is leaning the hard way :-? [ Edited by erekv02 on Date 04/26/2004 ]
It is possible to get the 100% on a duplex. It is a little bit more complicated than your personal residence, but that is what he is paid to do. I wouldnt say it is that hard though, just more paperwork. As far as 2% goes, as long as that is all he is getting it isnt that bad. Some mortgage brokers tell you that is all they get, and then get some of the points at closing or the back end as well, so make sure he is honest with you. Taxes will of course be higher as there are two homes instead of one.
Make sure to pull your credit and fix any problems you may have before you get the loan, one error could cost you a bunch of money in interest. Also if there are any problems with your credit your broker can fix them quickly, for around 120 bucks per fix. He should be aware of the program. The higher your score the better the rates.
Good Luck,
Kyle[ Edited by KyleGatton on Date 04/26/2004 ]
The lender that has the best rates on 100% LTV NOO that I know of only lends on SFH. They will not do a two family. So yes a duplex can cause a higher rate.
2 points is common. Most brokers who say they are charging less are getting it on the back end.
First off let me tell you folks that I really appreciate your sincere comments on my situation. Secondly, I would love for one of you to explain what you mean by the term "the back end" were could these hidden points or charges be situated at the time of closing. How do you know where to look?. I mean this is a cut throat industry that the looser is the one who does not pay attention. But I am willing to play my cards as best as possible.
Kyle,
When you refer to "repair" credit,what do you mean? Is it only elimination of errors OR do I understand that there are ways and means of improving one's score? I have looked at my report and it's accurate........but I would like it to be increased!
Thanks,
Mike