Second property purchase options ??

4 Replies

Hi Everyone,

My Name is Ryan and I am from the Madison WI area,I currently own a duplex that I bought just over two years ago as an owner occupied property.  For this loan, my first mortgage, I did only have to put down 5% and also received an $8K down payment assist/first time home buyer credit which if I can remember correctly I had to remain in this property for 5 years in order to receive the full amount.  I have been doing very well with this property and have learned a tremendous amount of knowledge over the past couple of years.  With that said I was wondering what ways or options I have if I wanted to pursue another property??  Obviously I could just use a conventional loan at 20-25% down, but unfortunately I do not have roughly $40k laying around.If at all possible I want to move into the new property, most likely another duplex, and rent both sides of my current property.  Any help would be much appreciated!

Originally posted by @Ryan F. :

Hi Everyone,

My Name is Ryan and I am from the Madison WI area,I currently own a duplex that I bought just over two years ago as an owner occupied property.  For this loan, my first mortgage, I did only have to put down 5% and also received an $8K down payment assist/first time home buyer credit which if I can remember correctly I had to remain in this property for 5 years in order to receive the full amount.  I have been doing very well with this property and have learned a tremendous amount of knowledge over the past couple of years.  With that said I was wondering what ways or options I have if I wanted to pursue another property??  Obviously I could just use a conventional loan at 20-25% down, but unfortunately I do not have roughly $40k laying around.If at all possible I want to move into the new property, most likely another duplex, and rent both sides of my current property.  Any help would be much appreciated!

Is your current loan FHA?

Originally posted by @Ryan F. :

Thanks for the response Brie. Yes my current mortgage is an FHA loan.

Your options are limited then... You can't have two FHA loans at the same time unless you do one of these two things:

1. refi the original house conventional

2. have a qualifying life event (add a dependant, job transfer 200+ miles away) but you need I think 15% equity in your house (double check that, I am 90% sure it is 15% equity)

@Marvin Anaya