Owner occupying a cheaper home than what my current home value is

[Christian Hanus]

Hello,

I've run into a problem and I'm wondering if anyone else has run into this and how you were able to solve it. I'm looking to do a conventional owner occupied loan 5% down and flipping the house while we live in it. The problem is that my current home that I live in which also has a 5% conventional loan on it is worth more than any house I'd be looking to move into and flip. Apparently UW's would have a hard time justifying why I would be moving from a more expensive home into a cheaper home (and likely not as large). Has anyone run into this and how did you solve it?

[Charles Carillo]

@Christian Hanus

I have known several people who have downsized homes (that are not retirees). I do not see an issue if you are actually going to live in the new house you are purchasing. The underwriter probably does not believe you are actually going to live there. I would try a different lender.