Let somebody else pay your mortgage

No, not like that!

Did you know you can actually live in your Real Estate Investment Property? Owning a Duplex, Triplex, or Four-plex is a great way to reduce your monthly mortgage payment while building up a solid investment for the future.  You can even do it as a first time home buyer if you plan ahead.  (You can also do this if you already own a home)
Homes with 2-4 Units can be financed as residential mortgage rates which are normally much lower than Commercial Mortgage Rates and require much less money down, even no money down in some cases.  You will also get access to higher loan sizes because loan limits for Multi Unit homes are higher than single family residences.

Rent your home out while it is your primary residence
When you purchase a 2, 3 or 4 Unit home it’s your right to live in any of the homes available units.  This means the remaining units can be rented and bring in income for you to offset your Mortgage payments.  Living in your own rental home is allowed by many mortgage lender’s and Mortgage programs.  Although it does bear some risk in terms of unoccupied units and more maintence the rewards in the long run are very hefty.

Using Rental income on a Primary Residence
Most lender’s let you use 75-85% of the rental income a unit will receive on your mortgage application.  Every program has different ways this income is added or subtracted from your total liabilities.  Checking with your local Mortgage Professional on what program best suits your needs is the best way to see how this extra income will be calculated on your mortgage application.

Down payment requirements
Some of these programs actually do not require a down payment, such as USDA and VA, while other programs require 3.5% and higher.

For more information on available loan programs for Multi Unit Apartments Check out the Articles Below
FHA Mortgage

USDA Home Loans

VA Home Loans

 

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