First Time Home Buyer - Need Funding / Advice

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First Time Home Buyer - Need Funding / Advice

Levi Fancher
Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes

Hi Guys - Im new to the bigger pockets forum and have been taking steps for FHA approval. My goal is to purchase a 3-4 unit property, and house hack w/ my wife. I have hit a wall recently in the approval process. I'm seeking advice and potential funding or investor friendly lenders that can shed some light or help with this process. Thank you in advance. Looking forward to connecting with the bigger pockets community !

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Nicholas FloydBusiness Member
NY · Member since 2026 · 288 posts · 95 votes
2w

Levi, I’d first find out exactly where the approval process is getting held up—credit, DTI, reserves, down payment, or the property itself—because the solution will depend on the issue.

Since you’re looking at a 3–4 unit house hack, I’d also make sure your lender is experienced with investor-friendly owner-occupied multifamily deals. If the obstacle is additional capital for reserves, closing costs, or improvements, there may be other funding options worth looking at depending on your overall profile.

Just be careful about taking on any new debt while going through mortgage approval without discussing it with your lender first. I work in the business funding space, so I’m always happy to share what I know if it can help point you in the right direction.

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  • John Leland
    Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 128 posts · 39 votes
    2w
    Quote from @Levi Fancher:

    Hi Guys - Im new to the bigger pockets forum and have been taking steps for FHA approval. My goal is to purchase a 3-4 unit property, and house hack w/ my wife. I have hit a wall recently in the approval process. I'm seeking advice and potential funding or investor friendly lenders that can shed some light or help with this process. Thank you in advance. Looking forward to connecting with the bigger pockets community !

    Without going into the tedious process of what it takes to get approved with a lender, you have to realize their number one goal is getting paid back. This is real money. They don't want houses that come back because payments are being missed. Have the loan officer you are speaking with give you a list of the items he needs to do the loan. Than you are wandering in the dark on what is expected.

    1Reply
    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      2w

      Thanks John! I’m in touch with a lender but I just recently learned that fha requires you to have zero accounts in collections. My student loans are biting me in the butt right now, because there in collections. Tried to get them out but have to be paid in full to remove from collections. Or refinance.

      0Reply
    • Ashley Mosby
      Investor · Cleveland, OH · Member since 2026 · 7 posts · 10 votes
      2w

      Hey Levi! Yes, Student Loans can impact the FHA process because both are government-backed. My husband went through the same thing when we purchased our home. He had to call his student loan servicer and set up a payment plan. It took about a week or two to reflect on his credit report, and then we were able to proceed with the FHA loan. Good luck!

      1Reply
    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      2w

      Oh okay! My lender said even if I had a payment plan that I’d still be ineligible because it would still be considered in collections. I’m going to find another lender through bigger pockets and see about a second opinion. I should call the collections officer back then and setup a payment plan for minimum payments / mo then is what your saying right?? Thanks for sharing it’s super helpful!

      0Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2w

    @Levi Fancher

    Welcome to BiggerPockets! Given that you are trying to get a 3-4 unit FHA house hack, I would get opinions from a few lenders specializing in owner occupied multifamily properties rather than depend on just one lender since approval will depend on a combination of things. You will also need a written reason why there was a hurdle since it will tell you what is needed next.

    Good luck!

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    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      2w

      Thanks ! I’ve reached out to one lender so far. My credit report shows 2 student loans in collections. He told me with fha that they do not allow any accounts in collections. So that’s the wall I hit recently. The collections agent wouldn’t allow me to get the accounts out of collections either. The only way to get them out is pay them off in full. Not in a position to do so right now. I’ll reach out to some other lenders maybe there’s a work around that still works. That’s why I came on here, to learn more about this process.

      0Reply
  • Ashley RigsbeePro Member
    Customer Success & Onboarding Specialist at BiggerPockets · Charlotte, NC · Member since 2023 · 99 posts · 38 votes
    2w

    Welcome to the BP community! House hacking a 3-4 unit with an FHA loan is a great goal. Hopefully you can get past that approval roadblock soon there are plenty of investors and lenders in the community who may be able to point you in the right direction. Best of luck! :)

    BiggerPockets
    1Reply
    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      2w

      Thank you! I appreciate the support!

      0Reply
  • William Rizer
    Member since 2023 · 79 posts · 27 votes
    2w
    Hey Levi, I’m a mortgage loan officer. If you ever wanna pick my brain, feel free to reach out! I’m not licensed in ct, other members of my team are. N if nothing else, I just enjoy nerding it up and talkin all things residential!
    1Reply
    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      2w

      Thanks William! Really appreciate it. I sent you a request to connect. Would love to pick your brain!

      0Reply
  • Nicholas FloydBusiness Member
    NY · Member since 2026 · 288 posts · 95 votes
    2w

    Levi, I’d first find out exactly where the approval process is getting held up—credit, DTI, reserves, down payment, or the property itself—because the solution will depend on the issue.

    Since you’re looking at a 3–4 unit house hack, I’d also make sure your lender is experienced with investor-friendly owner-occupied multifamily deals. If the obstacle is additional capital for reserves, closing costs, or improvements, there may be other funding options worth looking at depending on your overall profile.

    Just be careful about taking on any new debt while going through mortgage approval without discussing it with your lender first. I work in the business funding space, so I’m always happy to share what I know if it can help point you in the right direction.

    1Reply
    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      2w

      Hi Nicholas - Yeah, at this moment, it’s my student loan account thats in collections that the lender said is causing me to be ineligible for fha approval. Not sure how accurate that is. The collection agent said that despite getting on a payment plan, the account would not be pulled out of collections until fully paid off.

      1Reply
    • Nicholas FloydBusiness Member
      NY · Member since 2026 · 288 posts · 95 votes
      2w

      @Levi Fancher how's the rest of your credit report look outside of the collection?

      0Reply
    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      2w

      Credit around 650. Income 75k annual. Monthly debt around $1100 w/ minimum payments.

      1Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 470 posts · 194 votes
    2w

    Welcome, @Levi Fancher ! A 3–4 unit house hack can be a great strategy, so don't let one setback end the plan. Start by asking your lender to explain the exact issue—credit, income, reserves, debt-to-income ratio, property eligibility, or the proposed rental-income calculation. Then speak with a few lenders or mortgage brokers who regularly handle FHA multifamily loans, since experience and underwriting approach can vary. Have your income, debts, credit, available cash, and target price range ready so they can give useful feedback. It may also help to stay flexible on location, property size, or timing while you strengthen the weak part of the application. Keep asking questions and comparing options; sometimes the path forward becomes much clearer with the right lender.

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    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      2w

      Thank you Divin! That’s super helpful feedback and I’m going to reach out to other lenders for other opinions as well and ask for those specific questions to get more clarity.

      0Reply
  • Brad SeidBusiness Member
    Lender · Licensed in 28 States · Member since 2026 · 176 posts · 54 votes
    2w

    @Levi Fancher Welcome to BiggerPockets! House hacking a 3–4 unit property can be a great strategy. If you're still running into issues with the FHA approval, feel free to reach out. I may be able to connect you with lending options that could fit your situation and help you understand what's holding up the approval.

    [email protected]248-408-3855
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    1Reply
    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      2w

      Hey Brad thanks for reaching out. I will connect with you and message you!

      0Reply
  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 555 posts · 195 votes
    2w
    Quote from @Levi Fancher:

    Hi Guys - Im new to the bigger pockets forum and have been taking steps for FHA approval. My goal is to purchase a 3-4 unit property, and house hack w/ my wife. I have hit a wall recently in the approval process. I'm seeking advice and potential funding or investor friendly lenders that can shed some light or help with this process. Thank you in advance. Looking forward to connecting with the bigger pockets community !

    @Levi Fancher, it sounds like you're doing the right thing by getting another opinion from lenders who regularly work with FHA and multifamily properties. I'd let them guide you on the student loan issue rather than trying to work around it yourself.

    While you’re sorting that out, I’d use the time to prepare for the other side of the purchase too. With a 3 to 4 unit house hack, you’re not just buying your first home, you’re also becoming a landlord. I’ve worked with newer investors where questions about the contract, title, leases, or their responsibilities as a landlord became important very quickly once they found a property.

    I like that you’re asking questions instead of letting this first roadblock stop you, @Levi Fancher. I’m a real estate attorney and investor, and I work with landlords and investors regularly, so the legal side of that transition is something I see often. Happy to stay connected as you work toward your first property.

    [email protected]240-266-0291
    1Reply
    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      2w

      Hi Diana - thank you for sharing your thoughts! That’s really appreciated, and you’re right, I have not thought about the landlording part of it at all yet. I’m going to get connected with a couple lenders through the bigger pocket channels. I’ll definitely be sure to stay connected and start learning about the landlord side of things! I appreciate your feedback.

      0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2w

    Hey Levi,

    Are you able to put a larger downpayment? Maybe you might want to look into Non-QM loans

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    0Reply
    • Levi Fancher
      OP
      Rental Property Investor · Naugatuck, CT · Member since 2026 · 13 posts · 6 votes
      6d

      Hi Erik, I can realistically put something like $10-$15k down. What are non QM loans? Thanks for sharing.

      0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    4d

    Welcome to BP! Whats the wall you're hitting specifically - is it on the borrower side (DTI, credit, etc.) or the property side? On 3-4 units with FHA the one that trips up a lot of house hackers is the "self-sufficiency test", where 75% of the gross rents have to cover the full PITI payment, and its VERY tough to pass in a lot of markets right now with rates and insurance where they are. Duplexes don't have that test, so sometimes dropping to a 2-unit is the easier path to get started.

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    0Reply
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