01-16-2013 07:23 PM
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.)
01-16-2013 07:50 PM
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.
01-16-2013 09:12 PM
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!!!
01-17-2013 06:57 PM - edited 01-17-2013 06:58 PM
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.
01-18-2013 02:36 PM
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.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.