House Hacking Second Property While Holding On To First

[Rafael Palacios]

I live in Lancaster, CA and used an FHA first time home buyer perk to purchase my first home about 2 yrs ago at a 3.5 % down payment . After listening to bigger pockets podcasts and reading a few of Dan Turners books and forum posts on bigger pockets I learned about the house hack strategy and would like to implement it by pursuing the purchase of multi-family property with my second purchase. I'd like to ask what the best way to finance the second home would be? Considering relocation and making it the primary property was wondering if i would qualify for conventional 5% down loan or if that would be an option? If the bigger pockets universe has a better option out there I'd love to learn about it.

[Abel Curiel]

Originally posted by @Rafael Palacios:

I live in Lancaster, CA and used an FHA first time home buyer perk to purchase my first home about 2 yrs ago at a 3.5 % down payment . After listening to bigger pockets podcasts and reading a few of Dan Turners books and forum posts on bigger pockets I learned about the house hack strategy and would like to implement it by pursuing the purchase of multi-family property with my second purchase. I'd like to ask what the best way to finance the second home would be? Considering relocation and making it the primary property was wondering if i would qualify for conventional 5% down loan or if that would be an option? If the bigger pockets universe has a better option out there I'd love to learn about it.

Hey Rafael,

I recommend speaking to you loan servicing company or a mortgage loan officer/specialist. They'd be able to point you in the right direction once they determine your payoff amount. If you have enough equity in the property, you may be eligible to refinance out of the FHA loan and use any cash you have on hand to get a low down-payment FHA loan or possibly a conventional loan.

If you can get a 5% conventional loan for your house-hack deal, that would save you some money on mortgage insurance each month. 

Best of luck to you moving forward!

Abel