Updated about 5 years ago on . Most recent reply
Home Possible financing for 2nd Multifamily Purchase
I entered the real estate market by purchasing my first duplex back in April using the Home Possible loan program through Freddie Mac. This worked out extremely well because the loan type required a relatively low down payment (3-5%), providing me with a healthy ROI once I took over the property and raised rents to market rates. Now that I have had a taste of what it's like to be a landlord and have enjoyed some of the benefits of passive income, I am hungry for another one.
My question is, does anyone know if you can use the Home Possible loan program again, for the purchase of another multifamily (<4 Units) property if you already own one? Based on the FAQ from the website, it seems like it should be possible (See attached) but my lender seemed unsure. I guess it comes down to the interpretation of the definition of "one additional financed residential property".
If anyone has used the Home Possible loan to acquire two multifamily properties or helped someone obtain two multifamily properties while using this loan program, I would love to hear your experience and guidance.
Thanks in advance!
