Let’s admit it; everyone has a dream of owning a property. The lure of owning a real estate property, any real estate property, is too huge to pass on and that is why the majority of us work our asses off so that we may be able to say that we are also proud owners of a house.
But, do you know that as a first time homebuyer, you may be qualified to purchase a 4-unit property? Or is it that you are privy to this information, but you don’t know how to go about purchasing your property?
One truth, however, is that a first time home buyer may be too anxious or may not know what to look out for in the property. And even in some cases, the number of tasks and requirements that could be needed to make the home purchase can make many lose interest in buying the property.
In this blog article, we would help you demystify the house buying process by providing a guide on how you can finance a 4-unit property as a first time homebuyer.
If you are a first time home buyer, you would want to consider your financial capability and the financing options that are available to you. You would have to pick between one of the following options:
- Federal Housing Administration (FHA)
A federal housing loan is a mortgage-backed up by the government. With FHA, you don’t need to make the usual down payment of 20-25%. Instead, with a down payment of three and a half percent (3.5%), you are qualified to purchase a 4-unit property of your choice.
As a first time home buyer with a low credit score or if you cannot afford to make a huge downpayment, the easiest and best option for you would be to get an FHA loan that have more favourable terms in comparison to other types of mortgage.
- Veteran Affairs Loan
If you, or your spouse, is an active member of the military or a veteran of the military service, then you should know that the age-long belief that veteran loans can only be used to get single-family properties is wrong. You can, as a first time home buyer, use the VA loans to finance a 4-unit property.
VA loans tend not to require an outright downpayment; however, you have to make plans to live in a unit of the property as you cannot use the loan to finance an investment property.
- Conventional mortgage financing
You can as well use the conventional mortgage financing option to finance your purchase of a 4-unit property, especially if you have the intention of buying the property as an investment.
This financing option requires a 20% downpayment which can be higher sometimes if you are buying the property as an investment.
When you apply for this kind of loan, the lender usually would consider your credit score and credit history, your income, the assets you have and the level of your debts. All of these are taken into consideration before determining how much can be granted to you to finance your property.
The Power Is Now continues to keep you updated with the latest news in the real estate market. We strive to advocate homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. In this regard, we have a team of professional realtors— VIP Agents stationed nationwide to help you with anything you need in attaining your homeownership dreams. You can get in touch with the VIP Agents at https://www.thepowerisnow.com/vipagentsservices/. If you can’t find an agent from your area, you can contact me directly for a referral. Also, ensure you stay updated with any developing real estate market news by regularly checking our blog page at https://www.thepowerisnow.com/blog/. You can also set up an appointment to speak directly to me at https://calendly.com/thepowerisnow/ericfrazier.
Disclaimer: The views and opinions of Eric Lawrence Frazier are his own and do not necessarily represent First Bank or any organization affiliated with Eric Lawrence Frazier, or the Power Is Now Media Inc. First Bank is an Equal Credit Opportunity Lender. Eric Lawrence Frazier, MBA, is also a Vice President and Mortgage Advisor with First Bank. NMLS#461807 and a California Licensed Real Estate Broker DRE# 01143482. Email: Eric.frazier@fbol.com. Ph: 714- 475-8629.
Eric Lawrence Frazier MBA
President and CEO
The Power Is Now Media Inc.
