Your bank sucks! That is about the most lame thing I have ever heard. What is it? The First National Bank of Larry?
Man, go to a few other banks. If you are going to live in half of a duplex, you should be able to get into the place for virtually nothing down, 3% MAX! This type of loan is done ALL THE TIME! This is so easy, it is hard to consider it creative finance. Easy, easy, easy loan! Once you are in, if you have good equity in the property because of getting a good deal, you can immediately do a line of credit for the balance of up to 95% of the value.
I’m using Wells Fargo on my loans, and they are great. Just hit a few other places. You should be able to structure an owner occupy for max financing and eliminate the PMI in the process.
Have fun! Once you get the loan, be sure to let the other banker know.
Posted by Bill ¶ on February 22, 2002 at 16:32:17:
Hi everyone,
I’ll try to make this brief. I own a double home, which I occupy. I want to purchase a duplex. I would move from my current double, which is too big for me, and move into a smaller duplex. This would also allow me to rent the other half double I am currently living in and get a decent cash flow from the property.
I want to put 5% down on the duplex I am looking to purchase, I could get it for under market value (it’s an estate), move in and rent the other side of this duplex also. So I went to a bank to get preapproved, only to be told, once I submitted my application, that the bank spoke with the PMI company and the PMI company said that they considered this loan to be an investment loan, which means more down 20% which I do not want to do (not that I don’t have the cash, but I want to keep a good level of cash for maintenance, fix-up, emergencies). The bank said…that since the PMI company considers this an investment loan, they could not give me the loan because they don’t do investment loans!!
I’m not looking for an investment loan, I am going to live in this duplex??? The bank told me that I would continue to run into this problem no matter where I went for a mortgage (as long as there was PMI involved) Is this true??
To sum it up, I want to move from my current home (of 12 years, a double) into a duplex, I want to put 5% down and mortgage the rest…and the PMI co says no way…this is a investment loan.
You can get an FHA 203b loan on up to a 4 family unit and only have to put 3% down, you could even get a 203k loan and get money for repairs if you need it!
