I am very confused, so I would love some help figuring this out.
I am looking for a duplex in Los Angeles County (owner-occupied, first home). My credit scores are btwn 780 - 804 (although they may go down a tad as I am in the midst of consolidating my student loans). I will have between $30,000 - $45,000 for downpayment.
Is it possible to get a conventional loan with 5% down in the present climate?
If so, what is the limit for a conventional loan in Los Angeles County? (I am reading both $417K and $625K).
What is the likely interest rate, and where do I go to search out that type of product?? (e.g. credit union, major bank, broker, etc.)
The only bump you may experience will be the investment side of the duplex. Most want a larger down payment on an investment property so it will be important to find out how different lenders will view the duplex since it is considered a multi-family dwelling.
I didn't even know that 3% loans were possible still!
So, my remaining questions are:
What would be the lending limits of a conventional loan with 3% or 5% down in Los Angeles County? ($417K? $625K? Something else?)
What types of lenders typically have this product available?
When trying to buy a house, does the seller tend to care whether there is a 3% or 5% downpayment? (or more)
Thanks so much!!!
You can go up to 625k. Plus since your going conventional, you can get out of PMI.
I would do LPMI and take the upfront fee.
I just spoke with a possible broker, and he gave me some clear guidance on this question -- thought I would share if anyone else is trying to get their heads around the same things.
* Re: Conventional loan:
- 5% vs. 3% down : both are possible, but 3% down requires substantially higher mortgage insurance
- Loan limits: Single family limit is $417,00 max with 3-5% downpayment & $625 max with 10% downpayment; duplex is $533,000 max with 20% downpayment; triplex is $689,000.
Unfortunately, since we want to get a duplex (unless we just can't find one), we will have to come up with 20% for a conventional. Looks like FHA is going to be our only option, unless there are any financing mechanisms that still exist that will allow you to finance that remaining 10-15% of a conventional loan.