Yup! It’s true. You could be in a multi-unit home in 30 days! What’s the catch? There are 3:
- You still need to pay for closing costs. They average about 3.5% of the purchase price for buyers. That covers loan fees, title insurance, taxes, and escrow fees.
- This type of loan is considered an FHA loan (and no, you don’t need to be a first-time home buyer to qualify). You have to keep the loan amount below the FHA limits. In CA, you can’t go above $870,225 for a duplex.
- Unless you’re a veteran, you’ll need to pay Private Mortgage Insurance (PMI) until you have at least 25% equity in the property. On a $700,000 mortgage, the PMI would be about $500/month. Here’s a PMI calculator if you want to explore: https://www.hsh.com/calc-pmi.html
So… is it worth it? Maybe! It depends on the property’s rental revenue.
At the moment, the least expensive duplex in South Orange County is $735,000 (in San Clemente). Let’s talk about it! Call, text, or email me 24/7. I have a toddler so I’m probably awake!