Here’s what you need to know about qualifying to buy a duplex.
How do you qualify for a duplex? Do you need to have more money or offer a bigger down payment? The answer is surprisingly simple. The lender will take 75% of one of the rental unit’s income and add that to your income. If you’re buying a duplex where you’ll rent out each unit for $2,000, the lender will add 75% of that number, or $1,500, to your income. If you make $7,000 a month, you’d effectively have $8,500 when they qualify you for the duplex.
As far as the down payment, you don’t have to put any money down if you’re using a VA loan. However, you’ll still have to qualify based on your income. With an FHA loan, you can buy with as little as 3.5% down.
If you have more questions about qualifying for a duplex or any other real estate topic, feel free to call or email me. I look forward to hearing from you.
