Buying 2nd Duplex or Saving to Refinance?

[Brian Kebel]

Hello All,

I bought my first duplex in December 2019. I live on the 2nd floor and have a long-term tenant on the 1st floor paying $800/month. I bought this home using an FHA loan (only put 3.5% down). I recently began thinking about buying a 2nd duplex and have a few questions.

1. I was pre-approved for a 5% down conventional loan, on the condition that I move into the 2nd duplex I plan on buying. Do you think this mortgage will be approved by the underwriters? From what I've been reading here, it seems like most people have found that you need at least a 20% down payment in order to get a 2nd mortgage.

2. Do you think this is the right move? I'm deciding between doing this and saving enough money to refinance my current FHA loan so that I can stop paying PMI and get another FHA loan

Thanks in advance.