Beware Of Duplex Dream Killers

Portrait of screaming angry man on black backgroundHow much do you need for a down payment if you plan to owner occupy a duplex?

Three and a half percent.

Duplexes qualify for FHA financing. So do single family homes, triplexes and four unit apartment buildings.

In the last couple of months, several clients have gone to, ironically, the same lender independent of my counsel, and were told they needed a minimum of 20 percent for a down payment to purchase a duplex they intended to live in.

This lender, which is a nationally known institution, was wrong. Actually, the individual bankers my clients spoke with were wrong. This bank DOES offer FHA financing on multi family property.

Of course, they also offer conventional financing for an owner occupant, which does require 20 percent down.

The point is not every banker is familiar with duplex financing.

Before you sit down with a banker or mortgage broker, be sure to ask if they have a history financing small, owner occupied multi family properties.

Don’t let anybody ever kill your dream of duplex ownership with misinformation.