Conventional owner occupied to investment

4 Replies

I and my fiancé took out a conventional 25% down loan with primary resident. Closing on feb 16. We are moving in next week. I found another deal where I really want to do FHA with. How long do I have to wait to safely apply for FHA and to transfer that conventional primary resident to investment ?

Originally posted by @Thawda Aung :

I and my fiancé took out a conventional 25% down loan with primary resident. Closing on feb 16. We are moving in next week. I found another deal where I really want to do FHA with. How long do I have to wait to safely apply for FHA and to transfer that conventional primary resident to investment ?

 Each time you get an owner occupant mortgage, you will at the closing table and before a notary public swear that you intend to move in within 60 days and occupy for 12 months. You're going to have a hard time justifying yourself to a judge if two owner occupant mortgages close within a few months of each other, assuming of course the 2nd underwriter doesn't pick up on this obvious flag for fraud, cank the deal, and put you on a list that lenders share.

Best bet if you want both: You're doing 25% down anyways... switch it over to investment property financing. If it cashflows (according to Fannie/FHA math) and both loans are with the same lender, DTI will take care of itself and the only thing you need to worry about is reserves.

Why are you doing this first loan in both of your names? Do you need both incomes to qualify? If not, keep it in one person's name. Then buy the 2nd property in the other spouse's name. Each time you'll still have to do what Chris is saying but it won't raise as many eyebrows.

@Max Tanenbaum Given that I am closing tomorrow, I don't think I have much choice but to wait 1 year or 25% down with investment property. I do not need both income to qualify for the first loan. 

That's too bad. This first house will count for both yourself and your spouse towards the 10 conventional loans per borrower maximum.

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