Investor · Buffalo, NY · Member since 2015 · 17 posts · 1 vote
Hello All,
I am in the process of looking for my second 2-3 family house and have talked to three different banks about my options to finance it. All three of them have told me that because I currently own and live in a duplex and collect rent from the other half, that this next house must be considered an "investment property." By doing this it forces me to put 25% down plus 2 points instead of the 20% for being owner occuipied personal property.
My plan is to move into the next house, fix the apartments up while living in it and then move on to the next house and do the same thing. But by needing 25% down plus two points for each new property, that will greatly affect the deals of the houses I would be pursuing.
Can someone give me some advice on better financing options for my next house?
New Haven, CT · Member since 2015 · 107 posts · 22 votes
10y
those are a in house rule for those banks that they are enforcing them upon you. Try shopping around and as long as you satisfy the ooc requirement you should be fine.
Hey bro, I'm in a similar situation. I live in a duplex and rent the other side out. I'm currently looking for my next property. I have spoken to two mortgage brokers and because I plan to owner occupy they have said I can put 5% down. I would talk to some other lenders and stress the point you will occupy the residence. Good luck!
Investor · Buffalo, NY · Member since 2015 · 17 posts · 1 vote
10y
@Brandon Brown - Did you inform the mortgage brokers that you already own one duplex and are looking to buy another that you will owner occupy, and they said that is ok and you will only need 5% down??
Rental Property Investor · Nashville, TN · Member since 2015 · 102 posts · 129 votes
10y
I did. I am using 75% of my rental income to qualify. Only thing is I am looking at buying a single family home. But it shouldn't matter if your looking at something with 4 units or less. Also the Nashville market is hot and banks are wanting the business.
Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 888 votes
10y
I have lenders who would be happy to help. I just put one of my investors into his 9th home.. he lives out of state and had no problems. Hit me up if you'd like a copy of the list!