All Forum Posts by: Raymond Lawton

@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.  

@Chris Mason that is great that the guidelines have changed.  I visited the link you provided and am wondering if it is for single, two, and three family’s only.  I was able to find a lender who can help, but was informed they could only do 3 family or lower with home possible if it is my second hole. Have you ever used home possible on a buyer buying there second property as a 4-Plex with fix rate 30 year loan?

@Chris Mason I actually bought my 4-Family with a Home Possible Loan.  I was informed that the lending guidelines would not allow for me to buy a 4 family again with this type of loan unfortunately.  Is this a guideline or rule you are aware of?

Hi @Chris Mason , I appreciate your response to my post and have found your template helpful to better communicate what I am after so I have added my responses below.  If you have any loan type recommendations that would meet the criteria below that would be very helpful.

Hi @Dan Gamache thank you for the advice does your company do private lending?  I have added more info regarding what I am after below using Chris's template.

Your goals and story: I would like to buy a second 4 - Family Property and am interested in understanding what options I have available.

Type of property: Multi-Family (4- Unit)

Location of property: Massachusetts 

Purpose of financing: Purchase

Type of financing sought: Fannie/Freddie, private,  FHA

Current or prior ownership of real estate: Currently own one 4-Family Property that I have lived in for 10 months.

Occupancy: 30 Year Fixed Rate Investment or Owner Occupied Loan (I'd only want to live in it for at most 1 year if needed)

Down payment or equity: 20%, but preferably lower. 10% would be ideal.

Source of down payment funds, if applicable: Own funds

Income Source: Salaried/hourly W2

FICO: Excellent

Credit issues: None

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 

I have recently had an offer accepted and was planning on using a home possible or home ready conventional loan with 5% down to finance a two family property. I learned that with this type of loan I will have to live in the property for the life of the loan or will have to refinance if I plan on moving out and keeping it as an investment property. Unfortunately FHA is not an option because of the exterior having peeling paint and a conventional loan is a more attractive option for the seller. I realize that an FHA 203k loan might be an option for me, but I am interested in finding out if there are any other 5,10, or 15% down options besides this that will allow me to move out in 1-2 years without having to refinance to keep the property. Any advise would be really appreciated!

Dave, that is an interesting point you bring up in the last paragraph. Do you guys think I could purchase his in-laws apartment and then we could do a swap? What do you think the risks of this would be and is there any way we could make sure we are covered? I happen to know the seller personally so I’m not sure if this would change things?

Dave, thank you for your response.  He owns the property with his wife and the in laws are her parents.  What conclusions do you think would dictate whether they can proceed with the sale or not?  Also could they change the ownership of the property to help facilitate the sale?

I am currently in a situation where I am trying to help a seller who accepted my offer with a 1031 Exchange. Unfortunately he was informed that because the property he wants to exchange is owned by his in-laws he will be unable to execute the 1031 exchange. From what I have read there seems there might be some ways around this such as maybe changing the percentage of ownership in the property so they aren’t considered a relative. Any advice is greatly appreciated!