Purchasing another primary residence with less than 20% down.

3 Replies

So I purchased a primary residence in the Houston, TX area back in 2015.  I lived in it for two years and at the end of 2017 I moved to Boston, MA where I am renting.  Since moving out, I have leased out my primary residence in TX and it has been a rental since January 2018.  I have just signed an extension to this lease until December 2019.  I purchased it in 2015 with only 10% down and I believe I have now somewhere in the 15% equity in it.

I am looking to move back to the Houston, TX area now and am interested in buying a multi-family.  My question is, can I qualify for another primary residence and can I put less that 20% down on it?  Ideally I would like to put 5%-10% down on the multifamily.  Is this possible?

Edit: I would be living in one of the units in the multifamily.

Well, for multi family 10% down or less, it will be fha.  As long as your existing loan is not fha, it won’t affect you in getting an fha loan.

@Wayne Brooks - Thank you for the reply. My current loan is not FHA, it is conventional fixed 30 year.

I am looking at the FHA 3.5%-5% down as well as this Conventional 97 LTV loan. Are you saying that small multi families (2-4 units) are not eligible for conventional loans?

Also if the building needs some repairs possibly looking more into 203k FHA loans. Again, I am very unfamiliar with these different financing options. Just started Googling last week.

Originally posted by @Daniel Hoffmann :

@Wayne Brooks - Thank you for the reply. My current loan is not FHA, it is conventional fixed 30 year.

I am looking at the FHA 3.5%-5% down as well as this Conventional 97 LTV loan. Are you saying that small multi families (2-4 units) are not eligible for conventional loans?

Also if the building needs some repairs possibly looking more into 203k FHA loans. Again, I am very unfamiliar with these different financing options. Just started Googling last week.

Correct. The only low down payment option for multifamily is FHA. You can not use a low down payment conventional on a multi, you can only use those on single unit properties.

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