Looking for House Hack Financing!!!

[Cade Olof]

I am currently looking for my first rental property. I am located in Tucson, AZ and looking to purchase a multi-family where I can house hack. I am looking to get a FHA loan because of the owner occupancy. I have shopped around with different mortgage brokers and want to find the best deal possible. One of my loopholes is that I have a healthy credit but it's young and I don't have a strong work history for the past 2 years. This may result in me getting a co-signer which is fine or having to go with maybe a hard money loan which I don't want to do. Has anyone been in the same situation and what did you do? Does anyone know of any lenders or financing institutions that can work with young buyers like me?

Any and all comments would help and benefit me greatly! Thanks.

[Account Closed]

Originally posted by @Greg Koszkul:

Originally posted by @Account Closed:

@Cade Olof I'd recommend reaching out to a portfolio lender. They can bend rules conventional lenders can't because they aren't selling the loans in the secondary market. Credit unions are a great place to start. I'd have a conversation with a few and once you find one you like establish checking and savings account so that when the time comes they see you as an existing member. This can usually be helpful when applying for the loan.

 Hi Tylor! Would you suggest using any national lenders as opposed to local ones? My only reason for seeing this as a viable option is that there may be more options to compare when looking on a nationwide scale versus solely the options in just your local market.

None of the national lenders come to mind when considering who I might use over a local lender. Most lenders have the same programs. The differences, based on my experience, come into play on the service side of things. Large national lenders tend to shuffle you from person to person and take longer to execute, but typically can offer lower rates due to their size. Specialized mortgage companies like Guild, Nova, Summit, ect in Tucson typically offer a much higher level of service but the rate is a bit higher. They also tend to participate in more first time home buyer programs and down payment assistance programs that may not be for the seasoned investor but could be great for someone looking to get into a house hack and do their first deal. Then you have your credit unions who, to answer @Cade's question, tend to be your portfolio lenders. They are very similar to a mortgage company in operation but they are not selling your loan to the secondary market. That means they don't have to have as high of a loan to value ratio to make things work for them. It also means they can be more creative with the structuring of the loan. So all lenders have their place in the market. The most important thing is identifying your goal. Once you have that in focus have a discussion with all of them to identify how they can help you get there.