Investor · Los Angeles & Detroit · Member since 2014 · 52 posts · 17 votes
Hey guys! My husband and I currently own an owner occupied duplex in Los Angeles. We found another duplex .6 miles away we planned move into and finance via FHA. We were in escrow for about 20 days and everything seemed to be going smoothly. Then I was given the run around for another week and was just denied because they didn't believe we were going to move into the new duplex. We explained to them that the new place is in a better area. If you know LA; .6 miles can make a difference in the quality of neighborhood. Has anyone experienced being denied because bank assumes you are committing fraud? Can anyone recommend a loan officer who can handle something like this?
Flipper/Rehabber · Cincinnati, OH · Member since 2014 · 10 posts · 7 votes
8y
@Mattaniah Yip I'm a FHA and conventional underwriter. Your issue is going FHA. I recommend going conventional (you don't have to put down 20%). Your statement of intent to occupy as primary and a detailed explanation that you are moving for safety reasons should be sufficient to the underwriter.
@Joel Owens Thanks for your input. However, we are doing FHA because as far as I know there aren't any other programs that offer a low down payment for a multifamily, while still owning another property.
I just discovered Home Possible via Freddie Mac thanks to @Christian Bachelder. However, it seems you cannot own another property unless certain stipulations which we do not meet.
If there is one please advise. My credit score is in the high 700's. Having a marginal credit score is not the only reason someone may opt for FHA.
My goal was once the new property is to reach enough equity, I would refinance out of it into a conventional. This is the same thing I did with my current property.
If you know of any 5% conventional programs for multi family please advise.
Thanks everyone again for all of your input and advise.
If it’s a 4-plex (or less) then the 5% conventional should still work as it’s considered residential.
Just ask around credit unions, big banks, whatever. Someone will bite.
Really shouldn’t be that difficult. You have all the files ready to go.
@Joel Owens Thanks for your input. However, we are doing FHA because as far as I know there aren't any other programs that offer a low down payment for a multifamily, while still owning another property.
I just discovered Home Possible via Freddie Mac thanks to @Christian Bachelder. However, it seems you cannot own another property unless certain stipulations which we do not meet.
If there is one please advise. My credit score is in the high 700's. Having a marginal credit score is not the only reason someone may opt for FHA.
My goal was once the new property is to reach enough equity, I would refinance out of it into a conventional. This is the same thing I did with my current property.
If you know of any 5% conventional programs for multi family please advise.
Thanks everyone again for all of your input and advise.
If it’s a 4-plex (or less) then the 5% conventional should still work as it’s considered residential.
Just ask around credit unions, big banks, whatever. Someone will bite.
Really shouldn’t be that difficult. You have all the files ready to go.
Developer · Point Pleasant Beach, NJ · Member since 2015 · 303 posts · 216 votes
7y
Can you show them evidence that you are moving? Maybe show them that your current apartment is listed for rent? That might be enough to get them to know you are serious.