September 17th, 2015
Just Approved: FHA loan secures duplex for first-time buyers
Some first-time home buyers had their sights on a duplex in Oakland. The borrowers had good credit but had limited funds for their down payment. Financing a duplex on a conventional loan requires a 15 percent down payment. In this case, that amount would price the clients out of home ownership.
Several banks had already declined the couple financing because of their limited resources. Then their Realtor, Maria Sinclair with Bay Sotheby’s in Oakland, directed them to Colbert.
After meeting with the clients to discuss their unique circumstances, Colbert advised the flexibility of a Federal Housing Administration loan might be the solution.
FHA loans allow for borrowers to put as little as 3.5 percent down while allowing for a higher loan amount. The loans are available for a multi-unit purchase, as long as the borrower will be an owner-occupant of the dwelling. Since the buyers had enough money to meet the moderate FHA down payment requirement, Colbert was able to put their pre-approval in place. Their offer was accepted and escrow closed right on time. Colbert’s in-depth knowledge of the variety of loan programs available helped get her clients into their first home.