All Forum Posts by: Naseem Razek

Thanks for the reply Landon. I will send you a private message

Yes thats my issue. I'm trying to avoid having to move out before buying the multifamily

Yes we plan to occupy the multi family for 2-3 years. I understand the letter of explanation but the issue I’m having is lenders telling me that since our single family is only 11 miles away from her job it isn’t a good enough reason. 

Andrew thank you very much for your response and the link. I really do appreciate it.

Yes I understand that. 12/15/2023 would be one year in the sfh. I have no problem waiting until then or even a bit longer but lenders I've spoken to make it sound like it won't make a difference to their underwriters. 

Yes I would be moving closer to my wife's job (recently married). I tried obtaining FHA financing for the same purpose a couple months ago and provided a letter of explanation but the underwriter wouldn't accept this reason. Our current home is only 13 miles away from her job but it is over an hour drive. Shes a resident physician and on call sometimes so the commute is hard on her. Do you have any recommendation for lenders that would work with me? I am not trying to play the system and I will absolutely be occupying the property for at least 3 years. Of course I'm also motivated by the investment aspect of the multifamily.

Hey Erik,

Thanks for the reply! Yes I understand that and I haven't found a mfh yet but it would be a downgrade. I would absolutely be living there and renting the sfh but I understand the lenders doubt. I'm looking for a way around this that doesn't involve selling the sfh or renting it out before having another place to live. 

Hello all,

I'm hoping someone here can point me in the right direction. In December 2022 I purchased a single family home with 5% down which I am currently living in. I am now trying to use the new 5% down option on conventional loans to buy a multi unit property which I will be occupying while renting out the other units. I am having trouble when speaking to lenders. A couple lenders have told me that underwriting will not approve the new loan as I am downgrading my living situation from a sfh to a condo in the multi unit. I don't understand why this matters but they are telling me my options are to either sell the sfh (I would like to keep and convert to rental) or rent the sfh out first, then apply for the new loan with proof of rental income. They can use projected rent for underwriting but the purpose of renting out before applying for the new loan would be to help convince the underwriter to accept the deal. This, I am told, would make it easier for the underwriter to pass the deal through. I really don't want to sell and I definitely don't want to rent out my sfh and have to rent until I purchase the multifamily. Is here any way around this?

Thank you so much for taking the time to read and help with my situation.

Hello all,
This is my first time posting here so please excuse me if I'm missing anything. I currently have a conventional mortgage 7/6ARM. I am looking to rent that single family home and purchase a multifamily property using FHA loan in order to lower my required down payment. When I purchased the SFH I assumed that lenders would take some percentage of the rental income and apply towards my DTI. Now that I am ready and speaking to lenders I've been told that FHA guidelines will not allow the use of rental income from my currently mortgaged property. That lender is telling me my options are to sell my current property and proceed with FHA or put down 25% on the multi-family. Is this accurate information? What are my options if my goal is to put down as little as possible and house hack?
-Current property was purchased 3 months ago through my credit union as primary residence but they are allowing me to move early.
-Income is just over 10k/month - current mortgage 2900/m including tax and ins, no other debts - multifamily property will be in the neighborhood of 500,000 purchase price

Any advice would be greatly appreciated! Thank you