Can I buy 3rd home with a conventional loan (I have 2 VA loans)

[Kaitlyn Beard]

Hey all,

I know some lenders differ but I wanted to see what you guys have to say. I have two SFH properties now. I house hacked my way into the second and am gaining more tenants in December. I have enough for a 5% down on a conventional loan to be my primary. I plan on moving into that home and house hacking again. However, to secure the loan, I know I'll need to provide the leases for my other two properties. I will be receiving way above enough cash flow for DTI, but will I need to of had proven the income on the second home for more than x amount of time? For example, some lenders will say I need to be renting that house for 12 months and they need to see those bank statements to give me an additional loan (conventional) for my next primary residence. Or, do you think I'll be okay with finding a lender and providing him a 12 month lease for both the homes? The first home will not be an issue because there have been renters for 3 years. The second home has renters moving in starting December and I plan on buying in March. What do you think?

[Jason Wray]

Hi Kaitlyn,

Yes, You can purchase a 3rd home with conventional program.  If you have not filed taxes on the 1st or 2nd home you can still use the lease to "wash" the mortgage payment. You cannot use it as income beccuase no schedule E exists but it can help wash the debt.