I bought a duplex with 5% down conventional to house hack 8 months ago and I’m starting to look for another multi-unit to do the same with in a few months. I asked my lender how low a down payment he’s offering on conventional owner-occupied multis right now and he said 20% since I already own a multi. Is that accurate or do I need a new lender?
@Art Maydan a lot of lenders have been buckling down on this type of thing lately. If you are buying another primary home within 12 months of buying your last primary home they will want a good explanation....as in your job transferred you somewhere that would require you to move outside of the commuting time for your previous primary home. Is it possible for you to wait a few more months to buy your next home? Also, a 5% down duplex loan sounds like a portfolio loan. You could do 5% down on a duplex with a FHA loan. Are you sure it wasn't one of those loan types?
@Andrew Postell Thanks for the reply. I was going to wait the year anyway. I'm just starting the process. Buying the last house took almost a year (we got it off the market with me making $35K and just an offer letter for my wife fresh out of college so it was an ordeal), so I assumed this would take a few months. It's not a portfolio loan because they sold it immediately. It wasn't FHA because I had a bunch of FHA offers rejected before I learned sellers don't want to deal with it. The rehabber I bought from told me that. Don't both Fannie and Freddie offer 3-5% down owner occupy loans on 1-4 units?
@Art Maydan sounds good. If you are waiting the 12 months anyway then you will be good with buying a home with the conventional minimum of 15% down on a multifamily, owner-occupied property. If it was not owner-occupied it would be 25% down on multi-family. Conventional loans do have 3%-5% down options on single family homes but not on 2-4 units. Is your property a single family home with a mother-in-law type of unit?
@Andrew Postell My current property is a standard duplex. I thought Fannie and Freddie both offered 3-5% down loans on owner-occupied 1-4 unit buildings. I thought a triplex and a sfr was viewed the same way in their eyes. So that's not the case? It would not be feasible to buy a new 2-4 unit building with 3-5% down conventional every 12 months then?
@Art Maydan I am always learning but I have not heard of any conventional program that allows 3%-5% down on a duplex. 15% down has been the minimum for as long as I can remember. I'm always up to learn about something new though!
@Andrew Postell That's for sure what we did on ours. Pretty sure it's new. I googled some stuff and sent it to my lender and he agreed to do it. Can anyone else weigh in?
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