Low Down Payment Options

[Philip Olivier]

I recently purchased a duplex and went with the owner occupant route to take advantage of the low down payment option. its been 6 months now and everything going well so far. The property immediately appraised for higher than what I purchased for so I was able to get a $20,000 heloc against the property. My plan was to use this heloc as a down payment on a $300-$400k four plex once my year owner occupant requirement is up. This was obviously contingent on a low down payment option. My banker just informed me that there is a new rule with these programs and since I already own a property I will not be able to take advantage of a low down payment option for a multi family home but I can for a single family home. Im in louisiana so not sure if this is a specific rule for this state. Thanks

[Braden Smith]

Hey @Alyssa Kruger. The conventional loan would probably work for you, as long as the 5% down isn't an issue. It is only 1.5% more than the FHA minimum. The FHA 203k renovation loans can be used for properties with up to 4 units, and can be an easy way to get into a place with a low down payment and have the renovation costs rolled into the same loan. FHA loans are for owner occupants, but nobody comes to check to make sure you are living there for the full year. If you rent it out and the property is still in your name there wont be an issue. If you try to sell it within a year then there would be an issue. As far as finding a lender goes, I would ask around in your area. A good lender can make all the difference. My preferred lender here is with Movement Mortgage. They are a great company and can do just about every type of loan there is.