FHA/Conventional loan after a Commercial Loan

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FHA/Conventional loan after a Commercial Loan

Darryl Mens
Member since 2023 · 3 posts · 0 votes

First BiggerPockets post!

I initially had a single family home(SFH) which was my primary residence that I recently sold. I used the funds for the home sale to purchase my first investment property(6 unit - commercial loan). I plan to use an FHA loan to purchase a 3-4 unit property hopefully by the end of the year, which will be my primary residence.

After that I plan to purchase another SFH using a conventional loan while renting out the 6 and 3-4 unit.

How much of a down payment will the conventional loan require using that loan sequence?

Could I instead use a conventional on the 3-4 unit and how would that affect the SFH down payment.

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  • Jeff Prow
    Lender · United States · Member since 2023 · 73 posts · 13 votes
    3y

    Conventional 3-4 unit investment would need 25% down, we may be able to go with a DSCR loan with only 20% down.

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  • Darryl Mens
    OP
    Member since 2023 · 3 posts · 0 votes
    3y
    Quote from @Jeff Prow:

    Conventional 3-4 unit investment would need 25% down, we may be able to go with a DSCR loan with only 20% down.


    So with that being said, from a minimum down payment perspective I should use an FHA(eg 3.5% down) on the 3-4 family?

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  • Jeff Prow
    Lender · United States · Member since 2023 · 73 posts · 13 votes
    3y
    Quote from @Darryl Mens:
    Quote from @Jeff Prow:

    Conventional 3-4 unit investment would need 25% down, we may be able to go with a DSCR loan with only 20% down.


    So with that being said, from a minimum down payment perspective I should use an FHA(eg 3.5% down) on the 3-4 family?

    Your primary can go fha with the 3.5% down, if there are leases already in place all the better.  Then look at the investment.

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  • Darryl Mens
    OP
    Member since 2023 · 3 posts · 0 votes
    3y
    Quote from @Jeff Prow:
    Quote from @Darryl Mens:
    Quote from @Jeff Prow:

    Conventional 3-4 unit investment would need 25% down, we may be able to go with a DSCR loan with only 20% down.


    So with that being said, from a minimum down payment perspective I should use an FHA(eg 3.5% down) on the 3-4 family?

    Your primary can go fha with the 3.5% down, if there are leases already in place all the better.  Then look at the investment.


    Got it! For the SFH after the 3-4 family on an FHA I would I have to put 25% down correct?

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  • Jeff Prow
    Lender · United States · Member since 2023 · 73 posts · 13 votes
    3y

    We have 20% programs

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