Financing routes for rental property and primary residence

5 Replies

Hello all, newbie here,

I am looking for advice on which route I should take for financing. My story: currently renting but recently found a triplex I'm interested in as an investment property. My lease is up in October which is when I'd like to buy a duplex via FHA and live in one side. My dilemma: What type of lender should I be using being that I want to acquire 2 mortgages in a short period of time. How does a mortgage on a investment property effect the likelihood of acquiring an additional mortgage for a primary residence.

Thank you! 

a local bank should be able to help you ( NOT a national bank like BOA or Wells Fargo).  The local bank will evaluate on its value and your credit risk,  you will have to have 20% (approx) down though.  The way i do it,  is pay cash for the property, refurbish it, then refinance for 80% and i don't have to get an appraisal since its a refi.  

@Amanda Miller You can purchase triplex with 25% down payment under conventional loan and primary residence under FHA with 3.50% down payment. As long as you DTI is under requirement you can buy both properties in short period of time.

@Amanda Miller in a perfect world you would purchase the place you want to live first with a 5% conventional loan, then purchase the other with a 3.5% down FHA loan but it doesn't sound like it will work. Under the situation mentioned you will likely need a 20-25% down payment to purchase the tri-plex. Then if your DTI and credit are good you could purchase the second property to live in under FHA.

Connect with @Tim Swierczek , he is a local expert who can shoot you in the right direction. If DTI becomes a problem he also has some portfolio options.

@Amanda Miller Would not consider buying the triplex and moving in?  The incentive financially is to do just that.  It might make it worth you paying to get out of your lease, or just negotiating with your current landlord to get out early.   PM me and we can meet for coffee and I can show you the financing differences.

@Amanda Miller you may be able to get two properties like that for a lower down payment, if you're able to move into both. You'll have to live in both for a year but you could end up in both properties for close to 10% instead of paying 25% to get into them.

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