For a 2-unit, conventional. For a 4-unit, it’s 33% down.
We were in the right place at the right time. On our 4-unit, since we’re living there, we did FHA, before the PMI change, with 3.5% down, and 3.375 rate. We couldn’t have timed it any better if we tried.
---------- Post added at 09:32 AM ---------- Previous post was at 09:31 AM ----------
Absolutely
That was my plan from the start. Pay my FHA loan down as fast as possible to the 80% value and either rid the PMI or refi for a lower rate, whatever is better at the time. I can’t remember seeing it anywhere, but is that link above only for new FHA loans or can I stilll drop my PMI down the road?
It only applies to new loans after 6/1/2013
what are the pitbulls gonna do, lick someone to death? gas them out? thats all mine seems to do.
Double check that the only requirement to drop PMI is 80% equity. My mortgage holder, US Bank, told me that I had to pay PMI for 5 years even after I hit 80% equity. Something I don’t remember reading in my mortgage docs. So I’m refinancing.
LZ is right. You’ll still be able to drop PMI at the 80% point. Still, depending on your current rate (I’ll throw 4% out there) plus 1.5-ish% PMI, it may not be worth pounding down your principal balance, if you can make better than 5.5% elsewhere. In my case, I’m not going to bother with extra principal payments and use the money I’d pay down the principal with to buy another 4-unit a few years down the road.
Just rent a house with a 2 car garage in like Blasdell. Much cheaper and probably enough room for the cars and a little work area.
There is a house for rent 2 houses down from me that looks pretty decent w/ a 2+ car garage. I’ll see if I can get some details on it.
Citizens Bank would do 25% down on a 4 unit for me. At least that is what they told me…
Either way, I am glad everything worked out for you!
What’s the average price on a 4 unit place in Buffalo?
North, South, East, West or Cheektowaga?
Let’s say I’m looking to buy one, not in the ghetto. What could I expect to pay and where would I go?
I can’t offer much real advice as I’m working through the home buying process for the first time myself, but if this were me: Lower expenses, raise income/savings
-make gf get a job. Just because she can’t find a job teaching doesn’t mean she has to sit at home doing nothing. The least she can do is find a full time gig somewhere to help contribute, even if it’s as a secretary/data entry/anything. You obviously can support the household currently on your own, so if she contributes all of her earnings to a savings account which will go towards a down payment, you’re that much better off.
-try to find somewhere free to store some cars (like a family member’s place, barn, anything) that you won’t be using. Trying to find a home to accommodate 5 vehicles is a lot more difficult that one holding 2-3 cars
-make do with what you have to save more money for a home. I rent the upper of a double in North Buffalo and store TONS of parts in our basement and attic, and swapped my car on jackstands in one half of a 2.5 car garage. We share the garage with the lower tenants, who use the other half. You’d be surprised with what you can do with minimal space if you’re creative and resourceful.
As far as buying a home…the biggest factors seem to be good credit, and a low debt to income ratio. If GF has a job you immediately improve that ratio (should you combine your finances and buy a house together…I don’t know how serious you two are).
if you plan to move in a couple years…i would probably stick with renting.
gf doesnt even have a part time job? yikes.
5 cars plus a bike while renting? i understand car guys tend to need alot of garage space from having many projects, but i think this is a bit excessive haha. i had ALOT of projects, but ive cut that number down dramatically. 1 DD, 1 project, 1 toy that i race. couldnt be happier that i made that decision. much easier to deal with.
Renting or owning be prepared for the fact that you may be forced to keep the vehicles without plates in the garage. Most town ordinances, especially in the 1st ring burbs, don’t allow unregistered cars to be left sitting in the driveway.
And yeah, 5 cars plus a bike at this point in your life seems like a pretty poor financial choice but as long as you’re not getting any kind of public assistance what ever makes you happy. 
Between my wife and I back when we had an apartment in N.Buffalo we had 2 cars, a bike and a boat. Looking back at least I can admit some of that was poor financial planning on my part.
YOLO
my advice would be of the majority of the consensus here…
Fucking funny shit right there^
I have 5 cars and 2 bikes, anyone want to buy one?