I got pre-approved for an owner occupant loan!

[Misael Carlos Vera]

As the title says, I was pre-approved for an owner occupant loan in Chambersburg, PA! I plan to house hack so I am now looking for four unit multifamily properties. I'm really excited and just wanted to say thank you to the BP community.

[Bradley Padula]

Congrats! Don't get hung up looking for a 4 unit. If you're in the 3 to 4 unit range, and your proposed loan type is FHA (assuming it is?) versus a duplex, make sure it'll pass the FHA self-sufficiency test. Also, FHA inspections are different (more stringent) than conventional mortgage inspections. Research FHA inspections and the main things that would potentially cause an issue (can range from missing handrail, to peeling paint, etc). Once under contract, a handrail is an easy fix for example versus correcting peeling paint) Some multifamilies listed for sale specifically note "No FHA buyers" because they know it won't pass the inspection and/or the seller doesn't want to remedy the issue that an FHA inspector would list on the report, vs a conventional appraiser would would not.

In the meantime, be careful taking on debt, opening up new credit cards, bank accounts, buying a new car etc as this could impact your credit score & debt to income ratio come time for the loan, and in turn could affect your interest rate / how much you can borrow. Best of luck!!