5% Downpayment for investment Property

[James Hughes]

Hey guys,

I just bought a house for my girlfriend and I to live in about 3 months ago. I bought the house in a mad scramble before our baby was born because we were living in a tiny condo which wasn’t big enough for our new addition. I bought the house with a conventional loan and put 5% down.

I really want to move into a better area and buy something bigger to accommodate the three of us. I would like to use another conventional loan and put down 5% again but I wasn’t sure if this was allowed as I just did this 3 months prior.

I’ve heard there is a 1 year requirement? Are there ways around this or do I have to wait that full year before buying another primary residence with 5% down?

Any advice would be appreciated!

Thanks,

James

[Elise Marquette]

Hi James, from your post it sounds like you are looking to purchase a new home to live in to accommodate your increased family size? (Congrats on the little one!) An increase in family size is a perfectly acceptable reason to purchase a new primary residence for 5% down without waiting the 12 months. In underwriting you will likely have to write a small letter to the underwriter explaining the reason for moving so soon.

However, if this is going to be an investment property that you do not intend to live in, you'll have to put down anywhere from 15-25% depending on how many units.