Conventional Loan for Duplex or Triplex

[Brittney Wright]

Good Morning! I am looking for recommendations on good lenders that will find either a duplex or triplex with a conventional mortgage. I am planning to use my HELOC for the downpayment, refinance the rental and repay the HELOC. Has anyone had a good experience doing the same with a lender? Recommendations are needed and welcomed.

[Nick Belsky]

@Brittney Wright

I am fully licensed in Texas and would be happy to assist. Down payment minimums for conventional on 2-3 units are 75LTV max if you don't plan on occupying. If you occupy, then you can get into a duplex at 85LTV or a triplex for 80LTV. You can most certainly use your HELOC funds for the down payment and closing costs. In terms of using the same lender, yes, you can. Conventional will require you season the title for 6 months before you can cash out any equity from the property though.

If you go with private lending, you may find better terms than conventional right now.  You would not be able to occupy the property with private lending.  You could buy the property with conventional financing, then be able to season for as little as 3 months with no rehab, then cash out refi more quickly up to 75LTV of the new appraised value.  If you are doing rehab, then there are lenders who will waive the seasoning period and will go up to 80LTV on the newly appraised value.

You have options depending on your timelines and detailed plan of execution here.  

Cheers!