All Forum Posts by: Natalia Soares

About a year ago I bought my first four family with an owner occupied loan. I would like to buy another four family soon with a fixed rate 30 year loan, but was informed I could only buy up to a three with an owner occupied loan. Does anyone have any advice for how I could obtain a 20% down or less fixed rate loan on my next 4-family? Any help is greatly appreciated!

Thanks,

Raymond

Hi Raymond, what did you end up doing/going with?

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Originally posted by @Denny Robert:

Originally posted by @Josh Calcanis:

@Ryan Hurd Congrats on the multi!

I'm curious why you went FHA compared to just throwing a similar down payment at it and paying PMI. From my experience, the PMI drops off at 20% LTV and can be written off if you make under a certain amount (I believe 100k). I know you can write off MIP as well, but it doesn't drop off until 70% or something around there. So essentially you're putting down less in both situations, but realistically paying more in the long run (if it's a buy and hold).

Any other posters on here familiar with that? @Albert Bui @Denny Robert @Paul Cleveland

Josh,

My mortgage banker has told me he can't do a conventional loan on a fourplex with less than 25% down even if it's owner occupied. So it appears if someone wants to do a loan down payment option on a fourplex they have to do FHA, then refinance to conventional when it hits 25% to 30% equity.

There are the home possible and home ready loans that are conventional but they have income restrictions.

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Originally posted by @Jonathan Taylor:

Hello BP community,

I have observed a lot of confusion on the forums about financing options and the availability of programs for RE investors. As I have gained a ton of knowledge from the forums in my own journey, I would love to give back and answer any questions you have about the financing world. If I don't know the answer, I'm sure the community can step up and help as I am by no means the end all, be all of info.

So, what do you have questions about?

I bought my first 3 family with a co borrower with an FHA loan that we recently refinanced to a conventionalWe split the rental income on our taxes and the appraised value is at 80% LTV. I want to buy another 3 family with an FHA that I would occupy but need a co-borrower which is the co-borrower on the other property. However, it looks like for 2-4 units, all borrowers need to occupy and I need to qualify carry both properties. What is the best course of action here? Thank you!

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Originally posted by @Ryan Cleary:

My girlfriend and I currently own our SFH with an FHA loan that we closed on in October of 2019. We are looking to rent our place out at the end of this year and purchase a 4-plex. Would we be able to qualify for anther FHA loan? What kind of obstacles should we be expecting?

hi Ryan, did you end up finding a solution?

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Originally posted by @Jon McCarron:

Hi @Natalia Soares

You mentioned you refinanced into a conventional mortgage for your current residence. I believe you should be able to do another house hack with only the 5% down payment

unfortunately, I believe they have income limits 😢

1 Vote

Hi guys,

You know when you are feeling stuck...been feeling like this for sometime now..so maybe you guys can help. I bought my first 3 family about 2.5 years ago with a co-borrower in the greater Boston area. I house hack one of the units while the 2 other units pay the mortgage and expenses, not accounting for vacancies/properties management though. I have about 200k in equity and my unit would be about 2k in rent. I had an FHA on it but refinanced into a conventional which got me to the numbers mentioned above. (Definitely visit this site for a forum of people sharing their refi rates https://www.bogleheads.org/forum/viewtopic.php?f=2&t=289559&start=7100). I want to buy another property preferably another 3 family but I really don’t want to put 20% down. And this where I am stuck with all the below questions running through my head and always at a dead end....

- do I refinance to one borrower so I can get another fha? I would occupy it. I reached out to lenders to see if I can get an FHA but it doesn't look like it's possible because of how my taxes have the rents split and I would have to qualify with both mortgages which I don't...
- do I use the home equity to buy another one as a down payment? Found some banks that can give me line for 100% LTV as a 2 year fixed @5% and then variable or the lowest I found was prime+1. Is this even a good idea?

Any help would be greatly appreciated.

Thank you,

Natalia

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Check out this forum with everyone sharing their refi’s. At the top there is a search box you can use to put I. Keywords to get you to the info you need. Ex investment or rental

https://www.bogleheads.org/for...

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Boston, Massachusetts

You can get a better rate for the conventional. The below forum has people sharing the rates they are getting in this market. Use the search box at the top to type in keywords to get to the replies for what you are looking for such as investment or rental.

https://www.bogleheads.org/for...

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Checkout this site https://www.bogleheads.org/for...

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Check out this site where many are sharing the rates they are getting. https://www.bogleheads.org/for...

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All Forum Posts by: Natalia Soares

Natalia Soares has started 3 posts and replied 57 times.

Post: 2nd Owner Occupied 4-Family Lending

Post: Don't buy a house, just buy a four-plex

Post: Send me your financing questions

Post: Applying for second FHA loan

Post: You know when you feel stuck

Post: You know when you feel stuck

Post: Investment Property Refi in Boston, MA - Seeking Lender Referral

Post: Cash out refinance: commercial or conventional?

Post: Cash Out Refinance - Anyone else Struggling?

Post: great time to do refinance - got 2.875% 30 year fixed today