The Wealth-Building Benefits of Buying a Multi-Unit Home
Each year, CNBC conducts a national poll of Americans, asking them: “What do you consider the #1 way to build personal wealth?” Every year, without fail, Americans answer: “Real estate.” Let’s take a moment to look at the wealth-building benefits of two especially advantageous lending strategies offered by KFS Mortgage Company: (1.) Conventional loans for owner-occupied multi-unit homes, and (2.) The Freddie Mac Home Possible Program for 2-unit homes.
Owner-occupied multi-unit Home Loans
If you are willing to take on landlord responsibilities, purchasing a 2- to 4-unit home via a multi-unit loan can be a very attractive wealth-building opportunity, in part because you benefit from others helping to pay your mortgage each month. Keep in mind that you will have to live on the property as well. Fixed rates are offered with a term of 30 years. Individual program qualification requirements will determine the type of financing best suited for you. If you’re interested in exploring this option, we are always happy to answer any questions you may have.
Freddie Mac Home Possible Program (Multi-Unit)
This very helpful option can allow you to purchase a 2-unit home with as little as 5 percent down, as long as you plan to live in one of the units. It also has more flexible borrower requirements than other mortgage options, along with cancellable mortgage insurance. You also benefit from less stringent credit-score requirements, debt-to-income-ratio requirements, and loan-to-value-ratio requirements compared to other types of loans.
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Personal & Generational Wealth-Building
By taking advantage of either a standard multi-unit loan or a Freddie Mac Home Possible, you can significantly increase your personal wealth—and that of your family—for generations to come. Specific aspects of your wealth-building strategy will be:
For more information and answers to all your other mortgage-related questions, we invite you to contact KFS Mortgage Company.