I have finally gotten all my finances in order and am getting ready to house hack my first multi family.
Several of the properties I am interested in are actually detached multi families (4plex across 2 buildings.) They are on the same parcel and classified as a multi family by the county. According to FHA guidelines that is acceptable, but I have read conflicting things that many FHA lendors will not cover these.
Does anybody have past experience with this situation and can confirm whether this is actually true. If it is are there ways to mitigate this in advance or do I just need to continue calling lendors until one agrees to cover a detached multifamily. Is there a difference in national vs local lenders in this regard will I should focus my calls to?
I should not have any issues qualifying (760 rating, no debt, 2.5 years of mortgage reserves, relatively high W2 income.)
You should call your county to make sure what are you being told and county record match. If the property has one parcel number that shouldn't be problem. If you are working with lender send them county tax information--- can ask their opinion.
@Logan Wilkerson Welcome to BP and good on you for looking into REI. I would definitely 200% work with local banks there is a HUGE difference in service. With smaller banks you can build relationships and are more likely to get a loan. You are a person, a face, you are someone to them! To a larger national bank you are nothing but a number, and they won't waste the time on you if they see it as too much work. Not to mention they are much more strict and are much harder to get loans with. If you listen to many people when speaking of their first house hack almost all have gone through a local or small bank. They are just simply the better choice because it's more personal and you can talk and deal with the same person instead of calling some person halfway across the US. I would go in and talk to as many local banks as you can and talk to the lender representatives. Take them out to lunch and treat them how you would want to be treated! Ask them what their criteria is, and make sure your property fits this criteria. Usually they want to see a 1.5 debt to income ratio, many inspections and tests(which you should do anyways), along with other things that vary by bank. Personally your background and credit seem perfect from what you say so I can't imagine you getting denied if this really is a good deal. Just really network and find the right bank! Focus on cash flow not only for the banks sake but also for your sake. Cash flow is king. Good luck!
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