Hello, I apologize in advance if this post has been brought up in the forums. I searched and couldn't find a scenario exactly like my own so I thought it couldn't hurt to post.
My wife to be purchased a home in 2015 for 310k. Then we got married. According to Zillow/Redfin, the house is currently valued at 665k. Our goal is to purchase a multifamily unit and house hack it somehow. The market in Bothell, wa is super competitive for Multifamily properties.
I am now at a point where my credit is in the 800s, No debt, good paying salary. We are trying to determine how we can purchase a multifamily unit. I spoke with her mortgage officer and he didn't make me feel confident about our options and did a poor job explaining how to utilize refinancing for our goal.
Our goal is to either:
1. sell our home, and find a multifamily unit to house hack
2. Refinance, take out some $ and use as downpayment on a duplex/Triplex under my name and hopefully only put down 3.5% since I am technically a first time home buyer. BUT because my wife is currently not working, if we refinance, it'll have to be under my name.
My question is this: Would I lose a lot of benefits as a "first time" home buyer if I refinance now? I want to make sure that I don't blow my first REI purchase.
Thank you in advance. I appreciate it.
@Kalu Adane , have you also considered taking money out of the HELOC of your current residence.
You will need to run the numbers for the three options and see which one of them makes more financial sense
@Kalu Adane good luck with your REI journey!
@Dmitriy Fomichenko thank you!
@Sherief Elbassuoni Thank you for your response. I have quickly looked at taking on a HELOC, but from what I see, the interest rates tend to be much higher. Either way, crunching the numbers for the three options like you said make the most sense. Thanks.
@Kalu Adane There are benefits to a first time home buyer, but they are not something to stress over. The main difference is 3% down for a primary, vs 5%. My best advice is to find a new lender. Use the BP networking tool to find someone who specializes in investments. If your goal is to build wealth in RE, do everything you can to keep your current home as a rental if you can make monthly cash flow off of it. I would ask the lender about potential issues with refinancing. Let's say you do that now, you might not be able to move for at least another year into a multifamily. Your lender should be a great resource, not cause you more anxiety. It sounds like you and your wife are in a great situation, so I'm sure whatever you decide will be great!
@Katie Phillips Thank you for nudging me in the right direction! I definitely want to hold on to our first property as I think it can generate some cashflow. I will speak to another lender and talk more about the implications of refinancing.