Fixed rate only. No variable rate, no interest only loans. You don’t want to risk foreclosure when the interest rates go up again and then you can’t afford the payment. Keep it at a 15 year loan if possible and if you can afford it. If the mortgage payment will be more than 25-30% of your take home pay, then you can’t afford to buy the property.
I inherited a 2 unit home with my brother. What type of morgage would I apply for to buy him out?
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Fixed rate only. No variable rate, no interest only loans. You don’t want to risk foreclosure when the interest rates go up again and then you can’t afford the payment. Keep it at a 15 year loan if possible and if you can afford it. If the mortgage payment will be more than 25-30% of your take home pay, then you can’t afford to buy the property.
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If you intend to live in the house then you can apply for a conventional 30 year fixed mortgage.
if you intend to rent out both units then you need a commercial mortgage. Talk to your bank and see what they are offering.
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The loans for duplexes are not as good as loans on houses. Many people live in half of the duplex only long-enuf to get the loan. Then they move out. The banks have grown skeptical.
Go to the bank that does your checking. They will give you the requirements. Some will make your brother sign a deed to you as part of their approval process. Make sure your brother is 100% willing to go along.
You could have the loan in 21 days if your credit and income are ok.
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