Mortgage Pre-Approval for a House Hack

[Owen Concaugh]

Hello all,

Long time listener and reader of bigger pockets content, but first time poster here. Apologies if this belongs in another forum. 

I am 24 and looking to buy a multi family to house hack within the next year using FHA financing. Is the pre-approval process the same as it is for a conventional mortgage? Is there an advantage to getting pre approved through an investor friendly lender? It seems like a great way to establish a relationship and begin building my team.

Thank you in advance! 

[Brittany Minocchi]

Hey Owen - 

Congrats on beginning your REI journey! The preapproval process will look the same from your side of things, but your lender will consider different factors for FHA vs conventional (for example, they have different DTI and down payment requirements).

It would benefit you to work with a lender who understands the goals of an investor. The first thing that comes to mind that some lenders fail to address is the difference in FHA requirements between 2-unit properties and 3-4 unit properties....a self sufficiency test. As a lender who is a multifamily investor myself next door to you in OH, I'm happy to chat. Feel free to connect!