All Forum Posts by: RJ Dixon

@Latasha Griffin

Yes I have used FHA before. I use them for a fixer property. I usually refi so I can keep using the FHA. I might have to use it but what other low owner occupied loans can I use?

Cheers 

Hello BP!

I have just read the guidelines for Freddie and Fannie. My question is can you no longer use those loans for a 2-4 unit house hack. Also what other types of loans would be ideal for a owner occupied 2-4 unit? Any low downpayment options would help greatly.

I currently have under contract a illegal duplex so I was trying to live in one while I fix it up. The county records show its a single family. One AC, washer dryer hookup, one electric bill ( 2 meters though ) and 1 water meter. The appraiser originally ordered it to be a single family but now wants to run it as multi. We are trying to fight that as it’s a mother in law suite not a duplex hence lower downpayment ? Any tips and tricks? I have my lender working on it.

Cheers

-Rj

Also the land is zoned multi family.

I ended up Negotiating a 75/25 split my favor. This is after they wanted it all. I pressed back and said I have no problem going to arbitration. I still believe they should not have gotten anything. Thank you for the help! On to the next!!

@Michael Zau

The original contract stated conventional funding not FHA. If I switched over from conventional to FHA and got denied they would have even a better case to keep my escrow. My agent also advised me that this property would be hard for FHA to pass.

@Mindy Jensen

Yes we are both represented by agents. Also we have sent in writing both denial letters. That is why it blows my mind that they won’t release the funds.

@Tim Johnson

Quicken Wouldn’t except the rental income from my property because it has not been reported on my taxes yet. I didn’t really fight with Quicken I just had them as a emergency back up. Trustco which is a smaller bank I tried to fight and get a second look for the denial letter. The underwriter would not change her mind even after the massive amount of proof we provided to her to prove that we would be living in the house. Trustco also used our rental income on a nearby property but our numbers were good even without it. Both loans were denied on this Vocabulary Trustco denial- “ subject property appears to be a rental.” Quicken denial letter stated “ unacceptable property type”

@Scott Wolf

Appreciate it. I can get hard money but that will cost about 15k to get. Most banks require 6 month seasoning period. What would happen if I go To refinance and the same problem happens ? They only let me refi 85% instead of the owner occupied 95%. The property appraised for 205k so not much equity. So if I went HM I’m looking at 30-40k and possible trouble down the road. A straight owner occupied loan I was looking at 17k to cash to close.  

@Tim Johnson

I haven’t had luck with a good lender yet. We used a lot of effort to prove we would occupy. We are moving into the state but I have rentals in the area. Once they declined it we spoke to the appraiser about coming back out and she was ok with it and taking photos. We also had the seller take photos and write a letter why the tenant stayed a little longer. We also provided them a lease extension. It didn’t work. I called corporate as well, nothing. 

@Scott Wolf

Hard money and private don't make sense for this deal. I would only use a FHA if I can increase the value so I can refi out and use it again.

@Caleb Heimsoth

My agent suggested 5k down. Property is 200k. Quicken is terrible I had them as a 3rd option just in case all else failed. Which it did. They had a problem with a renter already in place and wanted to classify it as a investment property. Quicken wanted to go FHA but I don't think this would of passed FHA. As you are probably familiar with a house hack that is not what I was trying to do. Rent brought in 2,350 mortgage was going to run me about 1,200 so it's a killer deal. I pushed hard to get it. I went to get a 2nd opinion on the underwriter but they were not having it. The issue with them was when the appraiser went out to take pictures it looked like someone was still living in the unit. Which was true but they were moving out in eight days and the lender did not have that information. There was no going back after that point I feel.