OO mortgage vs. Investment Mortgage

[Nathan Miller]

I'm looking to purchase a 2-4 flat in which I intend to live in as my primary residence. At some point in the future, I expect y family to grow (from 3 to 4) and living in one of the units may no longer be feasible. If the mortgage I get to finance the original purchase of the 2-4 flat is OO, do I have t refinance if I move out in the future?

What else would I have to do if I were to move and keep the property as a rental?

[Jake Fugman]

@Nathan Miller The HomePossible loan was/is the only conventional loan product that allowed you to put under 15% down on a 2-4 unit OO property. BUT as @John Warren mentioned, with new rules its almost become impossible to utilize - so all house hack buyers hoping to put under 15% down on a 2-4 will need to go FHA. Make sure you research the FHA loan limits and the "self sufficiency test" that any 3-4 unit will have to pass before you dive in.

Bottom line, you dont have to refi once you move out, but IF you wanted to use FHA again you would have to refi into a conventional loan for at least 80/20 LVT. That means if you bought with 5% down you would need to build 15% equity in to get to 80/20 before refi.