Author Topic: Does a owner-occupied duplex qualify for a personal home mortgage?  (Read 356 times)

SwordGuy

  • Walrus Stache
  • *******
  • Posts: 7678
  • Location: Fayetteville, NC
I have a friend who has an opportunity to buy the duplex she's renting.  (Lives in 1/2, purchasing entire duplex.)

Can she expect to get a mortgage for a personal residence (5% down payment) or will she have to come up with 20-25% down?

Anyone know of lenders who will treat it as a personal residence loan?

Papa bear

  • Handlebar Stache
  • *****
  • Posts: 1668
  • Location: Ohio
Re: Does a owner-occupied duplex qualify for a personal home mortgage?
« Reply #1 on: January 19, 2021, 03:27:38 PM »
I have a friend who has an opportunity to buy the duplex she's renting.  (Lives in 1/2, purchasing entire duplex.)

Can she expect to get a mortgage for a personal residence (5% down payment) or will she have to come up with 20-25% down?

Anyone know of lenders who will treat it as a personal residence loan?
I bought one FHA for 3.5% down 11 years ago. It was a local back that did the loan.   


Sent from my iPhone using Tapatalk

bacchi

  • Walrus Stache
  • *******
  • Posts: 5445
Re: Does a owner-occupied duplex qualify for a personal home mortgage?
« Reply #2 on: January 19, 2021, 05:53:15 PM »
I have a residential mortgage on an owner occupied duplex. It also has a personal insurance policy with a rider for the other unit.

Like Papa, also local.

SwordGuy

  • Walrus Stache
  • *******
  • Posts: 7678
  • Location: Fayetteville, NC
Re: Does a owner-occupied duplex qualify for a personal home mortgage?
« Reply #3 on: January 19, 2021, 07:18:28 PM »
Thanks everyone!

I'm hoping my friend can make this work.   

I talked it over with her and if she made it thru the first 4 years it would transform her finances for the better.   Especially if she got a roommate on her side of the duplex for 2-4 years to help her build up repair reserves.


August26th

  • Stubble
  • **
  • Posts: 109
  • Location: Beautiful Colorado
Re: Does a owner-occupied duplex qualify for a personal home mortgage?
« Reply #4 on: January 20, 2021, 07:49:15 AM »
A 2-unit owner occupied home with Fannie Mae/Freddie Mac will require a 15% down payment. No way around that.

FHA would require a 3.5% down payment.