Multiple owner occupied conventional loans

5 Replies

Hey everyone,

Is it possible to have multiple owner occupied conventional loans? My plan is to house hack for a couple of years and acquire a couple of multi unit properties. The verbiage I got from my local lender regarding acquiring multiple owner occupied conventional loans was something to the tune of "the first loan is no problem, the 2nd is harder, and the 3rd is nearly impossible to get residential rates as banks will catch on to what you are doing and force you into a commercial loan rate".

I imagine there are others out there that have been able to house hack their way to acquiring a couple of properties using conventional loans without being forced into commercial rates.


I've never heard of a lender forcing someone into a commercial loan rate before. I can't speak to that really, but if your goal is to house hack multiple properties within the next few years why wouldn't you use an FHA loan at least once?

I used a Home Possible loan on my first duplex, my brother did the same thing on our next one, and the plan is to acquire property 3 & 4 using FHA loans. Home Possible loans are through Freddie Mac and you only need to put 5% down and it is considered conventional financing.

@Brad Couture

These properties can be looked at as stepping stones.

Use FHA for the first multi family. Yes, it has upfront MIP and the MI never goes away, but a 4 unit with 3.5% down is really a good deal and almost certain to cash flow. Make sure the property passes the self sufficiency test.

Next, use a conventional loan product for another multi family. Make sure it's a little bigger or closer to your work so the underwriter believes you're going to move into it. That's a big deal.

Then use conventional again and another multi family if you can.  

Then get a single family using conventional financing.

Hope that helps


Hi @Stephanie P. - thanks for replying, so on that second loan (the conventional one) would I qualify for residential rates and Down Payments? Or would I have to do the 25% downpayment with investment rates + reserves.....(which is basically what my local lender is telling me)

Should I consider reaching out to other lenders?

@Brad Couture

The beauty of BRRRR is using conventional money at owner occupied rates as long as you wait the requisite time period to buy each home and as long as you're willing to owner occupy them so if your guy isn't letting you do that, get another guy. If you need a referral, I have someone I can send you to. We don't do conventional financing at US Commercial, so this isn't a solicitation.