In the 1900s you would commonly find family generations living under one roof. For the last decade, extended families have begun to move farther apart. But again, this trend is changing.
Mostly for economic reasons, extended families have begun to live together once again. Thinking of ways to save and cut corners? Look into an FHA loan on a multi-family home.
A multi-family property is any home or residential building that has more than one unit. Most people purchase multifamily housing in order to invest in the property and use the rent from the tenants to pay the mortgage. The newest trend has been to purchase a multi-family home and move extended families under one roof.
FHA insured home loans can be used for a variety of properties, including purchasing the multi-family home for up to four families, or a condo or even a “manufactured home” on a permanent foundation.
FHA loans are an excellent choice for those with less than 720 Fico scores, and the FHA is still guaranteeing home loans.
• There is a minimum down payment of requirement for all FHA new home loans.
• Credit guidelines are more lenient with acceptable scores in the 600s.
• FHA does allow loan applicants to borrow money for a down payment, with restrictions
Some borrowers still have a difficult time coming up with the down payment and closing cost fees, however there are many programs available that “gift” these fees to the borrower.
Fannie Mae and Freddie Mac have no direct grant programs for down payment or closing cost assistance, so borrowers are not able to apply directly. Borrowers can inquire about these programs from their Mortgage broker or lender.
Many lenders participate with local, state and federal programs that provide down payment and closing costs assistance, i.e., all mortgage lenders and brokers are not created equal. This is why it can be vital to look around and ask your broker or lender which programs they take part in.
Living with parents just became the new trend
Many people looked down on the notion of “still” living with the parents, but today, mom and dad, siblings with husbands in tow and grandparents can be beneficial in many ways.
1. With several incomes, the monthly mortgage is more affordable
2. Child care fees are greatly diminished
3. When living with family, we tend to spend less on entertainment and enjoy more family time, which greatly benefits the younger generation
It may not be an ideal situation for everyone, but many families are making this FHA multi-family mortgage benefit them in many ways, especially with today’s tightened grip on our finances.
Speak with a real estate agent and lender to discuss your options.
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