Financing in my second property

4 Replies

Hi, So I purchase my first duplex by putting 5% down on a WHEDA loan and househacking in September 2017.  I would like to purchase more properties but my financing requires me to live in the property during the duration of the loan.  What should I consider doing next? Purchasing my next property with 20% down or refinancing my current property and moving into the next property to receive better financing terms.  What are the typical seasoning periods and what should I expect for fees.  I am doing this in Milwaukee Wisconsin.

@Kevin Korntved - househack again, no question about it. It is the single best way to get a portfolio started. Refi out of the Wheda loan, and then buy #2 again with owner occupant low down loan and move in. BTW I could have referred you to a lender that does 5% down conventional. Chances are that will appraise a bit better than last year, especially if you have done some work. PM me for details.

@Kevin Korntved a "conventional" loan or a "FHA" loan will require you to be in the home for 12 months if you refinance. Now, nobody is going to really check on this unless you go and get another conventional loan within 12 months of getting the other conventional loan. So if you do choose to refinance out, just make sure you are allocating enough time to get your next loan type. Conventional loans do have a 3% down option depending on certain factors. Let us know if we can help you with anything else. Thanks!

@Kevin Korntved  Congrats on your first duplex!

If you do have the 20% down, then it's not a bad idea to deploy that on your next investment property instead of REFI-ing out of the WHEDA. 

Overleverage is not always the best option. Something to think about. 

Hope this helps. Goodluck. Thanks! - Ola 

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