2 Different Loans within 2 Months

8 Replies

What's up BP??

I am looking to buy my first absentee landlord rental property with a conventional loan by early June. I currently live in an apartment and my lease is up in August. My Fiancé and I have also been talking about moving into our first primary "home" in August. 

My question is: 

All capital aside needed to secure the down payments, is it likely I can secure 2 loans within 2 months even though I have never purchased a home? I would intend to purchase the rental property in June with a 20%-30% down conventional loan, then the property in August (hopefully small multi-family) with an FHA loan and 3.5% down. Thoughts on plausibility I can obtain these loans?

Thank you!

Aaron

It's not impossible. If you are buying the investment property first, it will almost certainly need to be rented out by the time of applying for your primary so that the income covering the mortgage can be proven and does not affect your DTI. It is possible some lenders may want to see timely payments as well for a certain amount of time (especially with some Covid guidelines).

I know there are private money lenders out there that will lend to first time investors at about 25%LTV for a purchase. The rate will be higher than a conventional loan though. You could close the investment in an LLC, and most of those lenders won't report the mortgage to your personal credit report. That way, when applying for your primary you don't need to worry about having the monthly income to cover both mortgages. Not sure if it worth it for a first time investor to go this route, but it is an option.

Is it possible, yes it is. I just closed to refinances of 2 different rentals for the same borrower at the same time. They both closed on the same day, and 1 underwriter, underwrote both loans. 

Yes, depending on the lender (each lender may have no overlays, or different overlays) than the guidelines they were written to. Ask you lender if they have any overlays? If you have the rental leased out at the time you close your owner occupied, the lender should use the lease agreements X .75% to offset the mortgage payment. 

 @Nick Marrone :

Thank you for the response, the private lending option is one that interests me. I was reading about it last night actually in the book on rental property investing. Any chance you'd be able to put me in touch with some private lenders in the Dallas area? 

Thanks again, 

Aaron

@Nick Marrone

Thank you, for that information as New REI..I was thinking about, how We would get around this.

But yes I'm concern why you're saying it's not good ideal for young REI ? Could you please explain and thank you. I'm in Texas also

@Nick Marrone

I have same question,

we're planning on doing the same thing my husband and I were looking to purchase our first multi or duplex live there, acquiring equity close out w/ LLC purchase a home under it and continue flipping and buying multi units... can this be done ?

@Aaron Daniel

I would imagine it would work. Last year I took a mortgage out on a property I owned free and clear to buy another. 4 mos later a deal fell in my lap and despite not thinking my lender would give me another loan so quickly, it was no problem. Good luck