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How would a 2 family purchase be considered ,primary or investment? If only one of us live there.

We only have 10% to put down.Thanks,Joyce by cerray_282_892 from Perth Amboy, New Jersey. Mar 3rd 2013 Reply


Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

This would be a primary residence for FHA purposes. 3.5% down is all that is required! I would suggest if you are looking to make a purchase that you act as quickly as possible. As of 4/1/2013, the mortgage insurance premium will be increased will also remain on the loan for the life of the loan. Call me with any questions or send me an offline email! Thank you!

Mar 3rd 2013
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,960 contributions

As long as one of the borrower's lives in the property as their primary residence, it would be considered a primary residence loan. Living in one of the two units allows you to get primary residence financing and rental income on the other half. You could do this with either FHA or conventional financing. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Mar 3rd 2013
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Patrick McCarthy (PatrickM)
#22 ranked lender in Ohio - 196 contributions

Hello:The previous replies are correct. Depending upon who the other person you are referring to in your post as "We", will dictate whether you will need to use a FHA loan or will qualify for a conventional loan. Fannie Mae (Conventional) requires 20% down for 2 unit properties whether you live in it or not. It sounds like FHA is the way to go until you can show 20% equity or more in the home. At that point, you can refinance to a Conventional loan with no mortgage insurance required. Hope this helps.Pat

Mar 4th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,247 contributions

Primary residence for the person who lives there, the other borrowr would be considered a "non-occupant coborrower" which is only allowed for certain types of mortgages. FHA is the easiest option but find a reputable, experienced mortgage lender and work with them to figure out your options.

Mar 3rd 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

Hi Joyce, If you are looking to buy and have or need a co-signer, the co-signer does not have to live at the property for the FHA loan to be a primary residence. If I can help you further please email or call me , I live in Freehold,NJ and can meet you discuss any questions you may have. Thank you Peter 855 411 LEND www. HOMEMORTGAGEXPERT.COM

Mar 3rd 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,244 contributions

If you do an FHA loan it will be considered primary and possibly primary for conventional as well. We would need more info to tell you exactly what we can do for you.Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation.Ask for Michelle or Benny We will find the Best Mortgage Option to suit your needs!You can check us out at www.BestMortgageOption.com

Mar 3rd 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,124 contributions

Are you buying a two-unit property, or are two families buying one house? Regardless, as long as one of the loan applicants live in the property, it is a primary property for lending rule purposes. FHA allows this with just 3.50% down.

Mar 4th 2013
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Nicolas Amaro (NickAmaro)
#92 ranked lender in New Jersey - 23 contributions

Well Joyce, by now you've got the answer to your question, it will be consideed a primary residence. With 10% downpayment a conventional loan could be an option for you and avoid FHA Up Front Fees plus monthly mortgage insurance premium. Although you will pay a monthly Private Mortgage Insurance which be cancelled when your mortgage balance reaches 80% of the original value used to make the loan it could be a better choice thatn an FHA loan. We are conveniently located in Hazlet and very close to Perth Amboy. You could stop by if you wish and see how we can fit your needs with the best option for your particular case. Or simply give us a call, our office number is 732 264 2700 and my extension is # 38.Looking forward to hear from you.

Mar 4th 2013
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Jason Vondrak (jvondrak)
#218 ranked lender in California - 1,741 contributions

If you only have 10 percent to put down, you might want to look into an FHA loan. As long as one of the families will be living there, the property would be considered a primary property.

Mar 4th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

You can do this as a primary as long as you are going to occupy one of the units. However, in order to use an POTENTIAL rental income for qualifying purposes, you will need a signed lease AND a two year history of receiving rental income which will need to be verified by your tax returns.

Mar 4th 2013
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