All Forum Posts by: Natalia Soares

Hey Everyone,

I bought a 2 family rental with and FHA loan about 1.5 years ago. During that time I've completed a significant amount of work to the home (converted attic to extra living space adding about 900 sqft, an added bedroom, added bath, new roof, and various other things). Home values in my area have also increased significantly in recent months. My loan was recently sold to another bank and they have been contacting me about about an FHA Streamline. The guy I spoke to said my rate would lower to about 2.5% saving me around $200/month. I would still carry the PMI which is also about $200/month but I know the FHA Streamline is a fairly quick and cheap process (no income verification, appraisal, etc.). My main question is would I be better off trying to refinance to a conventional loan? I believe with the increase in home values in my area and the work I've completed on the house I would be able to reach the number needed for 20% equity. But I know there is a chance I don't hit the number needed for 20% equity. If I dropped the PMI I would also save about $200/month but closing costs would be much higher and its a more in depth process than the FHA Streamline.

Would I be better off locking in the 2.5% rate, saving $200/ month, the refinancing once I get to 20% equity and drop the PMI and save another $200/month?

I also have to consider the future and when I continue to purchase more properties the higher equity in the property will look better. Any input is much appreciated!

Thanks for commenting @Upen Patel and @Marshall Martinez,

From my understanding I would be able to apply for a FHA loan (2nd loan) even though my current loan is VA. To your knowledge, is that correct? If I were able to acquire a FHA loan I would use the 2nd property as a primary residence and then rent out my current VA loan home. I have lived in this home as a primary residence for one year.

Does it sound like I'm on the right track? If not, please feel free to let me know.

Thanks!

Hi Corey, what type of financing did you end up going with?

If I used a conventional loan on my first duplex purchase, but now I want to purchase a 2nd duplex—can I use the 3.5% down FHA loan if I plan to owner occupy 2nd property??

Hi Kathe, we're you able to get an FHA loan?

@spencer Davis Yes this is possible. I bought 2nd property with FHA while having a conventional loan on 1st property. I was able to qualify for both loans at same time so was not a problem.

@Natalia Soares without knowing your exact scenario, you should be able to purchase again, owner occupied. You might not be able to use the rental income of your vacating unit to qualify, but if you're in a multifamily you can use the other units for qualifying purposes. 

@Natalia Soares I ended up determining that it was a lender overlay and I could get a 4-family with an owner occupied loan as my second property.  Unfortunately although it was possible the underwriter didn’t allow me to buy my next property as owner occupied (it was a three family) because I refinanced my existing loan and there was a clause on the occupancy requirements they felt would be violated.  

I bought my first triplex owner occupied in Boston, MA and I currently live in it (I used Mass Housing). I bought my second triplex via partnership (investment property)in the same year. After the last winter, I realized that owning a house in Boston without a parking garage is a BIG MISTAKE. I live in a Not so nice neighborhood PLUS the snow that we get is just draining and I feel that I need a house with a garage. How hard is it to get a house (duplex or SF) that is owner occupied without having to put 20-25% down (as the bank may consider it as an investment property). I know FHA is probably my only option but would they even consider it? I am hearing different answers from different lenders but all I hear is that it's a long shot. Any advice?