Owner Occupied Duplex Mortgage

[John Gorbandt]

Hello Everyone,

My wife and I are new to real estate and are looking to house hack our first property. We have identified a potential deal in the Indianapolis area where we currently reside. I reached out to a mortgage broker this afternoon to discuss financing options for the duplex. The property is currently listed on the MLS as two separate properties when they are actually both sides of a duplex. I was discussing what the options were for combining the two properties into one deal instead of two. The agent then proceeded to tell me that for investment properties they require a 15% down payment, and for owner occupied they require a 5% minimum down payment. When we explained our desired to occupy one side and rent the other side of the duplex she informed us that we would have to have two separate mortgages one requiring the 5% for owner occupied and the other requiring the 15% as an investment property. Is this common practice, or do I need to find a new company to work with?

Thanks for all your help!

[Harvey Levin]

@John Gorbandt  Check with the assessor to see if they had been legally separated.  You MAY be able to just combine the parcels or you may have to have a new deed prepared. I had an investment double like that and we just combined the parcels but there was n mortgage and will probably need to have a new deed when we sell.   You also are paying much higher taxes on a double that is split than combined.  Once you purchase you will want to also file an appeal for the property taxes. I live in a double in Meridian Kessler and have to fight  each increase  to have 50% treated like a home and the other as an investment