buying an owner occupied multi, how quickly to the next?

Question

If you buy a multi with an FHA, how quickly can you get the next one? Any tips on how to quickly go from owner occupied to the next owner occupied?

Jeff Dulla · Answer

@Rigo V. If it is a portfolio loan, honestly the bank can do whatever the heck they want. From what we see on this side, it is very rare to see a bank ever stray from a loan where they have zero ability to mitigate risk and sell servicing or part of the loan off to someone. And if they do indeed take a loan where they are not able to mitigate risk or a non-QM loan, you better believe they are going to want something in return for that.

Rigo V. · Answer

@Jeff Dulla completely understand. I heard on the recent podcast on how they had a small bank allowed them to put down 10% dp on a multi family that they were owner occupying. Wasn't sure how common that was.

Jeff Dulla · Answer

@Rigo V. I believe you are signing paperwork saying that you intend to live in the property for the next twelve months. I know that in the past, there has been this motto of "things change or life happens" to excuse moving out before twelve months. I can tell you from an underwriting perspective though, banks are now looking very heavily into when you bought the home, did you buy owner occupied, did you move out early, and refuse you on even a Fannie/Freddie loan if you are trying to buy another owner occupied ahead of twelve months.

If you intend on using FHA again, you of course have the issue of proving that the you either had a material life change warranting a larger property (had children) or you are moving far away for work.