About 8 months ago I purchased my first 4plex using an FHA 3.5% downpayment loan. I am eager to purchase my second 4plex with the same FHA 3.5% DP loan; however, to do so I need to refinance the first loan. I currently have about 5% equity in the property and don't have additional funds to purchase more equity, what are my options?
I was in a similar situation a couple years back when I bought my first property (duplex) with a FHA loan. Same as you i wanted to jump into another 2-4 unit property with a low down 3.5% or 5% but at least in my situation I ran into a road block. From what I found FHA was pretty much one and done. If you just turn to conventional financing you could most likely get a SFR for 5% down if it is your primary residence but if you want another 2-4 unit property as your primary residence you are looking at 20%-25% down. Again this was just my experience and I hope you find a lender with another option with low down.
Best of Luck,
Thanks for the response. So, were you able to find a different path to get more properties? Also, how common is it for 4plex owners to seller finance the 25% DP necessary for a conventional loan?