Financing first house hack

[Daniel Campos]

Hello guys

Im new to real estate investing and I want to house hack in my local market but I encountered a problem with financing, I currently have 2 single family homes, one of them is rented and I wanted to rent the other house so I can move to a multifamily (duplex), but the lender said that the bank won't approve the loan because they don't believe that I will be moving from a single family to a multifamily, is there a way to overcome this situation or some kind of proof that I can provide? 

Thanks for the help 😄

[Matthew Kwan]

You would probably need to construct a letter of explanation and provide a  justifiable reason. The downside of getting a bank loan is that they are only one dimensional and can only offer what their guideline say so. Have you tried considering getting a loan with a mortgage broker? They ususally can work with multiple lenders and provide you a tailored fit mortgage option. @Carlos Valencia @Albert Bui

[Travis Lackie]

lol tell them yeah i was lying to you 

[Ryan Thomson]

@Daniel Campos what?! That sounds ridiculous. Ask them what you need to do to convince them that's your plan. If they say you "can't convince us" than go find another lender immediately. 

Maybe setting up a lease for your current house would help convince them? Or a letter that you sign? 

[Reid Chauvin]

@Daniel Campos I don't see any problems here unless you already have an existing FHA loan and you are trying to use an FHA loan to buy the multi. Getting a signed lease on the home you currently reside in once you get under contract for the multi will definitely help your case, especially from a debt to income ratio standpoint. Work with another lender! More than happy to assist.

[Matthew Kwan]

You would probably need to construct a letter of explanation and provide a  justifiable reason. The downside of getting a bank loan is that they are only one dimensional and can only offer what their guideline say so. Have you tried considering getting a loan with a mortgage broker? They ususally can work with multiple lenders and provide you a tailored fit mortgage option. @Carlos Valencia @Albert Bui

[Daniel Campos]

Quote from @Ryan Thomson:

@Daniel Campos what?! That sounds ridiculous. Ask them what you need to do to convince them that's your plan. If they say you "can't convince us" than go find another lender immediately. 

Maybe setting up a lease for your current house would help convince them? Or a letter that you sign? 

 Thanks for the help @Ryan Thomson ,  i did explained to her what my plan was but she just ghosted me, which is weird because she helped me when I bought my two other properties. But I'm already working with another lender. 

[Daniel Campos]

Quote from @Reid Chauvin:

@Daniel Campos I don't see any problems here unless you already have an existing FHA loan and you are trying to use an FHA loan to buy the multi. Getting a signed lease on the home you currently reside in once you get under contract for the multi will definitely help your case, especially from a debt to income ratio standpoint. Work with another lender! More than happy to assist.

Thank you @Reid Chauvin , I haven't used an FHA loan yet only conventional, I reached out to another lender to see what my options are I hope I can't get the loan this time.

[Daniel Campos]

Quote from @Matthew Kwan:

You would probably need to construct a letter of explanation and provide a  justifiable reason. The downside of getting a bank loan is that they are only one dimensional and can only offer what their guideline say so. Have you tried considering getting a loan with a mortgage broker? They ususally can work with multiple lenders and provide you a tailored fit mortgage option. @Carlos Valencia @Albert Bui

Thanks!! If doesn't work with this new lender I will definitely reach out to a mortgage broker. 

[Ryan Thomson]

Quote from @Daniel Campos:

Quote from @Ryan Thomson:

@Daniel Campos what?! That sounds ridiculous. Ask them what you need to do to convince them that's your plan. If they say you "can't convince us" than go find another lender immediately. 

Maybe setting up a lease for your current house would help convince them? Or a letter that you sign? 

 Thanks for the help @Ryan Thomson ,  i did explained to her what my plan was but she just ghosted me, which is weird because she helped me when I bought my two other properties. But I'm already working with another lender. 

 AHHH I see now. Yeah she is scared about getting in trouble for giving you multiple primary home loans. Go to another lender. 

[Daniel Campos]

Quote from @Ryan Thomson:

Quote from @Daniel Campos:

Quote from @Ryan Thomson:

@Daniel Campos what?! That sounds ridiculous. Ask them what you need to do to convince them that's your plan. If they say you "can't convince us" than go find another lender immediately. 

Maybe setting up a lease for your current house would help convince them? Or a letter that you sign? 

 Thanks for the help @Ryan Thomson ,  i did explained to her what my plan was but she just ghosted me, which is weird because she helped me when I bought my two other properties. But I'm already working with another lender. 

 AHHH I see now. Yeah she is scared about getting in trouble for giving you multiple primary home loans. Go to another lender. 

Ohh wow I didn't know she could get in trouble for that, is it something illegal or unethical to lend multiple primary loans to a single person? 

[Jay Hurst]

Quote from @Daniel Campos:

Quote from @Ryan Thomson:

Quote from @Daniel Campos:

Quote from @Ryan Thomson:

@Daniel Campos what?! That sounds ridiculous. Ask them what you need to do to convince them that's your plan. If they say you "can't convince us" than go find another lender immediately. 

Maybe setting up a lease for your current house would help convince them? Or a letter that you sign? 

 Thanks for the help @Ryan Thomson ,  i did explained to her what my plan was but she just ghosted me, which is weird because she helped me when I bought my two other properties. But I'm already working with another lender. 

 AHHH I see now. Yeah she is scared about getting in trouble for giving you multiple primary home loans. Go to another lender. 

Ohh wow I didn't know she could get in trouble for that, is it something illegal or unethical to lend multiple primary loans to a single person? 

 @Daniel Campos You will be asked by the any competent underwriter your intent. It only makes sense as there is occupancy fraud (Where you say you will move in for the lower down payment requirements and better rate). In fact, you will see the question on BP quite often. " will they really know? " is always the tenor of the question. So, yes, moving from SFR to MF is going to raise questions. But, there is no rule saying you cannot do it. It just has to make sense. So, expect to have to put together a letter of explanation. As mentioned above getting a lease on your current home would likely go a long way as well.

[Daniel Campos]

Quote from @Jay Hurst:

Quote from @Daniel Campos:

Quote from @Ryan Thomson:

Quote from @Daniel Campos:

Quote from @Ryan Thomson:

@Daniel Campos what?! That sounds ridiculous. Ask them what you need to do to convince them that's your plan. If they say you "can't convince us" than go find another lender immediately. 

Maybe setting up a lease for your current house would help convince them? Or a letter that you sign? 

 Thanks for the help @Ryan Thomson ,  i did explained to her what my plan was but she just ghosted me, which is weird because she helped me when I bought my two other properties. But I'm already working with another lender. 

 AHHH I see now. Yeah she is scared about getting in trouble for giving you multiple primary home loans. Go to another lender. 

Ohh wow I didn't know she could get in trouble for that, is it something illegal or unethical to lend multiple primary loans to a single person? 

 @Daniel Campos You will be asked by the any competent underwriter your intent. It only makes sense as there is occupancy fraud (Where you say you will move in for the lower down payment requirements and better rate). In fact, you will see the question on BP quite often. " will they really know? " is always the tenor of the question. So, yes, moving from SFR to MF is going to raise questions. But, there is no rule saying you cannot do it. It just has to make sense. So, expect to have to put together a letter of explanation. As mentioned above getting a lease on your current home would likely go a long way as well.

 Thank you so much, I will make the explanation letter in case they ask for it, I really appreciate the help. 

[Hamp Lee III]

I was in a similar situation, and I provided my lender with a contract agreement with a property management company for the property I was vacating. They should also accept a lease agreement on the property.