2 To 4 Unit Properties

Purchasing 2 To 4 Unit Properties

First time home buyers or home buyers who eventually want to become real estate investors can now purchase 2 to 4 unit properties as an owner occupied residence with a FHA Loan with 3.5% down payment. 2 to 4 unit properties can be great investments for home buyers intending on occupying one of the units and renting the other units to offset the monthly housing expenses. FHA does require that mortgage loan borrowers of 2 to 4 unit properties occupy one of the units for at least one year. After occupying one of the units for at least one year, the 2 to 4 unit property owner can then qualify for another owner occupied home and rent out the unit they are exiting.

FHA Loans And 2 To 4 Unit Properties

To qualify for 2 to 4 unit properties with a FHA Loan, the mortgage loan borrower needs at least a 580 FICO credit score. There is a 3.5% down payment requirement for mortgage loan borrowers with at least a 580 FICO credit score. Borrowers with credit scores under 580 FICO credit scores, a 10% down payment is required. Mortgage rates on 2 to 4 unit properties are higher than mortgage rates of single family homes because mortgage lenders view multi unit buildings as higher risk. With higher risk means higher mortgage rates. To get the best mortgage rates on 2 to 4 unit properties, one should have credit scores of at least 640 FICO. Mortgage lenders will require three months of reserves for three and four unit properties. Reserves are one month of principal, interest, taxes, and insurance or PITI. Many mortgage lenders require two years landlord experience from the mortgage loan borrower to be able to count potential rental income as part of their mortgage lender overlay. If a mortgage lender requests two years landlord experience in order for them to count potential rental income, the seek another mortgage lender where they have no mortgage lender overlays .

Using Potential Rental Income To Qualify

FHA allows up to 85% of the potential market rent income to qualify for the mortgage loan borrower’s income calculations. However, many FHA mortgage lenders have mortgage lender overlays where if the mortgage loan borrower does not have two years landlord experience, then the potential rental income cannot be used to qualify. If you are told that you do not qualify due to mortgage lender overlays because you do not have two years landlord experience, contact Gustan Cho Associates at 262-716-8151 or email Gustan Cho at GustanCho@Outlook.com.

Can I Qualify For 2 To 4 Unit Properties With Conventional Loans?

You can qualify for 2 to 4 unit properties with conventional loans, however, owner occupied 2 to 4 unit properties require 15% down payment with conventional loans. You can also use potential rental income but the potential rental income you can use is 75% of the potential market rent that is stated on the home appraisal.

Hard Money Capital Group

Welcome To Hard Money Capital Group

Hard Money Capital Group is a hard money and private money lender that caters to real estate investors, real estate developers, and property flippers who need fast temporary financing. Hard Money Capital Group, www.hardmoneycapitalgroup.com , has no loan minimum and can fund loans as little as $20,000 and close it in as fast as one week. Most hard money lenders want a minimum of a $100,000 loan minimum and most hard money lenders may take as long as 30 to 90 days to process a hard money loan. Hard Money Capital Group‘s management staff consist of professional real estate investors, mortgage loan professionals, and real estate professionals so they understand the importance of fast financing and understand that many real estate investors went through bad credit due to the 2008 Real Estate and Mortgage Meltdown.

Does Hard Money Capital Group Have Credit Score Requirements?

Hard Money Capital Group does not have any credit score requirements. Hard Money Capital Group is an asset based mortgage lender and want the hard money borrower to have skin in the game. Minimum equity and/or down payment requirements to qualify for a hard money loan with Hard Money Capital Group is 35%. 100% financing is available if the hard money borrower can cross collateralize other properties. Hard money borrowers with bad credit or lower credit scores can qualify for hard money loans with Hard Money Capital Group. While the hard money loan borrower utilizes the hard money loan, Hard Money Capital Group can help the hard money loan borrower fix and improve their credit through its sister company, Credit Fix Advisors , and help them with an exit strategy with a traditional mortgage lender, Gustan Cho Associates . Gustan Cho Associates are commercial and residential mortgage professionals whose specialty are no mortgage lender overlays . Gustan Cho Associates are creative mortgage lenders, portfolio lenders, and have access to specialty mortgage lending programs such as Doctors Funding Group . Doctors Funding Group offers unsecured financing to doctors, dentists, veterinarians, chiropractors, pharmacists, nurses, and other licensed members of the healthcare community for as much as $500,000. Hard Money Capital Group is different than any other hard money lender because every hard money client is a lifelong borrower and they offer full service not just funding the hard money loan, but also assisting the hard money loan borrower with credit repair, and helping them with an exit strategy.

Fix Rehab Flip Loans

Fix Rehab Flip Loans are one of the most popular hard money loan programs. Most traditional mortgage lenders do not want to originate and fund loans under $100,000. However, we at HMCG can fund hard money loans as small as $20,000, the hard money loan borrower can rehab the property and flip it at a handsome profit. For hard money borrowers who want to keep the investment property and keep it as a rental after the rehab, they can get a hard money loan with HMCG , fix the property and get end financing with Gustan Cho Associates. During the time of the rehab, HMCG will help the hard money loan borrower maximize their credit scores and do credit repair so they can get the best mortgage rates and terms on their end financing.

If you are interested in a private money or hard money loan that can close in a week, please contact HMCG at 800-900-8569. One Solution Real Estate, www.onesolutionrealestate.com, full endorses Hard Money Capital Group.