I just recently bought my first 2unit via fha loan, and i want to start building my rental portfolio early next year in 2020. I recently talked to my loan officer about my options and he said that i wouldn't be able to get another fha loan and that the next property i buy i will have to put down 20-25% i only want to invest in multi-units for now since it's how i started and want to continue to grow that way. I don't really have 20-25% to put down on a property and i looked into refi and/or doing a HELOC but i saw that one of the requirements is not having any late payments on your existing loan which i do due to loss of a job. Is there any other way? I know partners are also a great solution but it's hard trusting other people especially since i have already been hurt by a business partner before. Any info or advice would help.
Shop around lots of mortgage brokers can set you up on a 10% down. Rates bit higher but still good option. There are also a few tricks to get a second FHA. For HELOC feel free to message me I know a good company that can probably still do it and at a high LTV.
@Whitney Moses not all mortgage brokers are created equal. It sounds like you have run into one of the fairly uneducated variety. The 80/20 principle holds true in lending just like it does everywhere else. I have a lender I can refer if you need someone, but there are quite a few work arounds. One of the best ways is to refinance your current FHA loan if you can create equity in some way (renovations, cosmetic improvements, appreciation). This "unlocks" your FHA loan and essentially lets you use it again.
Did you research the 5% down conventional loan when you started? There have been major changes to the loan program this year, but I still have clients in the Berwyn and Cicero area that are able to use the program.
@John Warren thanks for the info, i was thinking maybe refinancing may be the way to go but i had no idea about the 5% conventional loan, will definitely do my research about it. I'm not looking to buy again until early to mid next year but i just wanted to know my options, and yes if you know of a good lender who can be a great help to me please refer them to me. Thanks again for the advice.