Financing Properties with Personal Residence in Mind

[Justin Pace]

Hi everyone,

I am an investor in Huntsville Alabama. I purchased my first property about 1 year ago, and am looking at getting another soon. One thing that I am thinking about it how I want to finance my properties keeping in mind that I will also looking to get my own personal residence in the next 5ish years (could be in California). I also want to make sure I can get my own personal residence under a home owner occupied conventional loan. 

My question is, for those of you that have multiple properties, how have you structured your financing of these properties and has it compromised your ability to get a loan on your future home? Will transferring my loan/ownership to an LLC help with this?

Thanks!

Justin

[Peter McDonough]

The only requirement is the duration of residence.  Once you get an owner occupied loan, you need to live in the house for a year.  You can have multiple owner occupied loans--they can be obtained at a rate of one per year, per the requirement given previously.  Also, there is a exclusion to the rule for significant life changes: you can buy a house in Huntsville with an owner occupied loan, then move to California 6 months later and obtain another owner occupied loan when you do so.