California Platinum Loans Shares With You Today, A Sure Fire Way to Double Your Home Buying Power Including A 30-Year Home Loan

Have you ever thought of buying a duplex or triplex, and renting part of it out? This strategy has been around as long as there have been multi-family dwellings, and it can be just as effective today as ever.

You have several options for financing the purchase of a multi-family home, including FHA, VA, and conventional mortgages. Some companies even offer different types of flexible financing that may allow you to buy a property in the neighborhood you want to live in. If you’re a veteran, this option could be a smart way to build your family’s future security. As of 2020, there are no more VA county loan limits, so you can buy a higher-priced property as long as your income and the rental unit income can qualify for the loan.

How can a multi-unit property double your buying power or more?

If you buy a duplex, triplex, or four-plex and plan to live in one of the units while renting the others out, the income from the rental units can help you to qualify for a California home mortgage, including a 30-year FHA loan, 30-year VA home loan, or another type of mortgage product.

Let’s say you have a monthly income of approximately $8,000 and very few bills other than a car payment. Using conservative mortgage payment calculator estimates, you’ll be able to qualify for a 30-year fixed-rate home loan of approximately $390,000 at 4.5% interest. Add in $2,500 a month in rental income, and you will be able to qualify for a financially conservative mortgage payment of $2,940 a month, equaling a 30-year fixed-rate mortgage of approximately $527,700 at 4.5%. Each $1,000 in monthly rent can help you qualify for about $60,000 more in total loan amount at an estimated 4.5% interest rate.

You can find some duplex, triplex, and other multi-unit property gems that could be an ideal match for your lifestyle. While there can be drawbacks to living in the same property as your tenant, you can educate yourself and set boundaries for a smooth, trouble-free lifestyle. Why not consider a duplex, triplex, or larger multi-unit property to double your homebuying power or more?