As the real estate landscape shifts, many people are rethinking the traditional single-family home. Especially now, when the average 30-year, fixed-rate mortgage has reached a multi-year peak, potential homeowners are eyeing smarter options. Cue the multi-unit property: a unique mix of home and investment, now accessible with as little as 5% down. Let's delve into why this is a brilliant move right now.
Why Multi-Unit Living?
Multi-unit living isn't just for landlords and real estate tycoons. It can be a savvy financial move that can pay off in more ways than one, especially when you live in one of the units. You're not just buying a home; you're investing in your future.
In times of rising mortgage rates, diversifying your investment while securing a home can be a win-win. Opting for a multi-unit primary residence has never been more attractive. It allows you to live in one unit and rent out the others, effectively turning your neighbors into a secondary income stream.
The Financial Perks
Here's the exciting part: Prosperity Home Mortgage has rolled out the option to finance up to 95% Loan-to-Value (LTV) for 2, 3, or 4-unit primary residences. This means you can take advantage of the rising trend in multi-unit living with just 5% down. This significantly reduces the entry barrier, making it easier for you to get into the real estate market. And let's not forget the rental income from the other units, which can help offset your mortgage payments.
Navigating the Rising Rates
You've heard the news—mortgage rates are at a 21-year peak. This 95% LTV option for multi-unit primary residences could be your hedge against those increasing costs. By having tenants in the other units, you're generating income that can help mitigate the impact of rising mortgage rates.
A Real-Life Example
Say you opt for a $500,000 property with a 5% down payment. You're looking at an initial outlay of just $25,000. If you were to rent out two other units at $1,200 each, that's $2,400 of extra income every month. Over a year, that's nearly $30,000—more than covering your initial down payment!.
*This example is for informational purposes only.
Boosting the Value of Real Estate Partners
Real Estate Agents, listen up! Offering such flexible mortgage options to your clients elevates your service. You're not just helping them buy a home; you're opening doors to lucrative investment opportunities. It's about enriching your service by offering smart, accessible financial solutions that adapt to market trends.
Partner with Prosperity
When you choose Prosperity Home Mortgage, you're opting for more than just a loan. You're partnering with a team that prioritizes transparency, trust, and top-notch customer service. Our innovative loan solutions, like the 95% LTV option for multi-unit primary residences, are designed to empower you to make your real estate dreams a reality.
Wrapping It Up
The times may be challenging, but they're also full of opportunity. The multi-unit property trend is more than just a fad; it's a financial strategy that doubles as a home. With Prosperity Home Mortgage's 95% LTV option, entering this game-changing market just got easier. So why limit yourself to a single-unit home?
Contact Prosperity Home Mortgage today and let's explore how multi-unit living could be your next smart move.
