Buy Rental Properties in 2017
First Time Home Buyer Investor 2017
****GREAT NEWS! 2017 CHF Platinum Program is offering down-payment assistance grants that will allow for PROPERTY FLIPS! See CHF Platinum Program!
With first-time home buyers becoming savvier by the year, many of them aren't simply looking to purchase a starter home, but are desiring to purchase income properties and rental units using a first time home buyer program. While the majority of first time home buyer programs where down payment assistance and monies are rewarded generally do not allow non-owner occupied multi-use properties to be part of the equation, FHA (Federal Housing Authority) has made this investment opportunity even easier for qualifying first time home buying individuals purchasing multi-family units by offering them the same low down payment guidelines as they would first time buyers purchasing a single family dwelling. One of the units must be owner-occupied and listed as the FHA borrower's primary residence.
Live in one and rent the other!
The task and job as landlord may seem quite daunting to a novice, but no one can dispute the advantages of having someone pay either a portion, half, and in some cases all of their entire mortgage while they live mortgage/rent free!
Only 3.5% minimum down payment for 2 -4 units
FHA is offering financing up to 96.5% of the value of a 2 -4 unit home, requiring only 3.5% down. The more down payment, the better the cash flow in terms of net income because of lower mortgage payment. If you can afford it, do what makes the most dollars and cents.
Higher Pre-Approved Price Using Potential Income from Tenants
If a lower down-payment wasn't awesome enough, FHA will even consider crediting the qualifying "live in one and rent the other" borrower up to 75% of the rental income they will receive from the second unit as their qualifying "income" to get the property. WOW! In most cases a duplex is in the same price range as single family residences. With a single family residence there is only you paying off your mortgage. With a duplex, triplex or 4 unit building, your tenant(s) will be assisting you with the mortgage payment.
Same Credit Scores Needed as for Single Family Home Purchase
Borrowers will still need to have qualifying credit scores of at least 620 or more. Most lenders still prefer a middle FICO of 640 or better only only because it only takes one slight credit hiccup to slightly drop a score, causing unecessary delays. The higher score, the more wiggle room there is.
Start your Los Angeles, Long Beach, Downey, Carson residential income property and rental unit search now:
DOWNEY RENTAL INCOME UNITS
LAKEWOOD RENTAL INCOME UNITS
BELLFLOWER RENTAL INCOME UNITS
If you are interested in using your first time home buyer status to invest in residential income properties and rental units in Los Angeles, Long Beach, Downey, Carson, the South Bay areas do not hesitate to call us at 310-508-4354.