Published on 04/23/19 by Linda Babineaux of Babineaux & Babineaux Partn

Call for my list of professional loan officers, this is the kind of valuable
information they provide to help you work out financing challenges!

                      - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

(The following is excerpted from one of my favorite loan officers emails)

"Buying a double.  It is a fantastic way for a new homeowner to get into homeownership and it’s an amazing way to build wealth over the long-term.
I spend a lot of time game planning how to finance these, so below are my cliff notes that I share with clients: 

·         Conventional financing
        o   Typically requires 15% down on a double that will be a primary residence
            with a maximum loan amount of $620,200.

        o   Does not allow a double to be used as a second home – must be categorized
            as a primary residence or investment property.

   §  If labeled investment, down payment requirement jumps to 25%.
            §  I get this scenario a lot – they want to rent one side and use the other side
               when they are in town.  They can do this from a tax perspective, but there
                is no gray area with Fannie.  It’s either a primary or an investment.

        o   We are allowed to use 75% of the rent to qualify a homebuyer, so a person
            can often afford a larger price point than on a single family

   §  One thing to pay attention to if you are the listing agent – we do get the
               leases for the current tenants, so if we are categorizing it as a primary we
               will want to ensure that our buyer is moving in within 60 days of closing.

         o   ***Loophole – Freddie Mac has a HomePossible program that allows 95%
               financing on a primary residence double

   §  The key is that the buyer must make below $65,600 or the property must
               be located in a “No Income Limit” census tract.  If it is located in this
               census tract, the property qualifies on its own and the buyer can make any
               income level.

   §  Here is the link to search specific addresse 

            ·         If you search a property and it comes up with “Home Possible Income
                   Limit:  No Income Limit” then any potential buyers can finance up to
                   95%.  This changes the pool of potential buyers drastically!!

·         FHA Financing

o   FHA doesn’t make a distinction based on property type – so they finance up to 96.5% for doubles too!

o   Maximum loan amount for FHA on a double is $403,125.

o   Tighter appraisal standards than conventional, but still a very functional loan.

·         Jumbo Financing

o   If your client needs a loan amount larger than $620,200, then there are jumbo loans available.

o   Most of them cap out around 75% loan to value, so they do need a bit more down."


Contact me for my favorite Loan Officer Names List
Linda Babineaux  504-957-8014 cellular


Check back often for more great loan officer tips on my Blog site!











Website Feedback

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Property Bin