Cannot get 5% down on duplex

[Brian Mackey]

Hello,

I currently house hack a home with an adu in the back.

I bought it in April of ‘19. Now I’m looking at a duplex across the street and I can only get it with 15% down owner occupied financing.

I have a mortgage broker who understands house hacking and has been working hard to find a lender that will allow me to get into the duplex with less down, but hasn’t had any luck.

What am I missing that I can’t get into my next property at a lower down payment??

Is it unrealistic for me to assume I’ll always get 5% down. I have a 740 credit score, great income...I don’t get it.

[Tim Houzenga]

@Brian Mackey

You can have the greatest credit score In the world, but in the end it’s going to come down to your debt to income ratio....

Got any friends that understand what you are doing that would go in on the loan with you? I’ve co signed on a few loans with some younger folks in my area to help them househack. I get equity buildup and I get part of cash flow for providing a signature... obviously I understand the risk and can back the loan if I had to.... but to me it’s like having a pre screened tenant in my rental from the start.

Obviously I don’t do this willy nilly with random folks, but it’s been working out so far. I get passive income and people get into properties and build up their credit scores. Win win win in my book.