Did you know you can use your FHA loan to purchase more than 1 property? Well now you do! According to FHA guidelines, you can purchase a duplex, triplex of fourplex with as little as 3.5% down payment. Like all FHA home loans this is for owner occupied homes only, meaning you will need to live in the property.
Here is an example from BiggerPockets.com on why this is such a great opportunity for First time home buyers:
Your mortgage is $1,500 a month and you receive $1,000 a month from the rented side of the duplex while living in the other side. After 2 years you move out and get a signed lease on the side you were living in for another $1,000 a month, bringing your total rental income $2,000 a month. The lender will credit you 75% of that as income (25% is estimated to go to vacancies and repair costs). In the lender’s eyes you are now have a $1,500/month mortgage debt and a $1,500/month rental credit. You break even.
Arizona FHA Lending Limits for 2015: Maximum Loan Sizes
Single Family: $271,050
Single Family: $271,050
Duplex: $347,000
Triplex: $419,425
This blog of investment information was inspired by our previous client, Roberto. Congratulations Roberto on the purchase of his new homeS!! 🙂 It’s been a true blessing being able to help you reach one of your goals of building your real estate portfolio! C&C Real Estate Group wishes you all the best in future endeavors in 2016 and the years to come!
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