Can you apply for two mortgages at the same time?

Question

Hello awesome BPs

I have got my pre-approval and I am qualified for the higher amount. My DTI is small that the lender has said I don't have to provide the rental information on my current house.

Apologies if the following question is silly :)

I am wondering if I can buy two smaller houses than one big house and if this is even possible at all. The approved amount is good enough for two townhouses basically. So wondering if it is possible or not.

Bill B. · Answer

As long as the lender knows, and you qualify, this is a non-issue. It may even save you some money or at least hassle as you reduce underwriting document requests. I purchased two separate houses from two different realtors with the same lender I found about a week apart.

Logan Singleton · Answer

You must disclose to the lenders that you have additional credit applications out simultaneously. Typically, this is one of the last questions asked on the application.

Kal Wol · Answer

Thanks a lot @Bill Brandt I will be following that route as well.

Theresa Harris · Answer

It shouldn't be a problem.  If you are using two different lenders for some reason, just let them both know.

Kal Wol · Answer

Thanks @Devin Peterson disclosing the information is not a problem and I have done for one of the lender I approached and, you are right, he was not happy about it, at least for his firm.

But are you referring is possible to have the conventional loan if I am going to house hack on one of it? I mean is that still possible to have some 10% or so down for two if I am going to live in one of the house is?

And sorry, I didn't got the part you mentioned about 75k, what is it correspond to? Is that for any kind of house? Sorry again if I miss it while it is very clear

Devin Peterson · Answer

This really depends on the main purpose of the other purchases. Are you trying to buy other properties as investments? If so, you can use the conventional loan if you are house hacking.. (not sure that’s just what it sounds like) but - you can use a DSCR loan to purchase other rentals. Minimum loan amount for a single family property is $75,000. I would still be transparent with the lender that you’re doing more than one loan at once. I’ve been on the other side of that conversation, not something lenders want to hear because it can jeopardize relationships on the buyer and broker side.

Antonio Chelala · Answer

Make sure to notify your lender! In the future when you do have many loans taken, make sure to consider the DSCR loan which does not take into account your personal income but the property's rental income.

Kal Wol · Answer

Thanks @Dave Skow

Dave Skow · Answer

@Kal Wol- yes - make sure your  lender is aware of this plan and get  two  files  set up and the  pre approval updated  for this two property plan

Bill B. · Answer

Sorry, no.  I found the two houses a week apart from two different realtors bringing  them to me. I hadn’t intended to buy more than one property but the lender I had set up for the first property was happy to do a second loan with almost no additional work on their part. All loans and all properties are solely in my name, no LLCs.  I just use a large umbrella policy to save time, money and hassles.

Can you apply for two mortgages at the same time?

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