Mortgage broker situation advice

[Jamie Cianfarani]

Good morning, looking for advice on how to hand the following situation:

We're currently residing in a single family house that we'd like to rent. I was pre-approved for a conventional mortgage and found a 2-unit house that we liked. My mortgage broker told me I qualified very well for conventional, so my real estate agent and I moved forward with the offer at 5% down conventional. A week after making the offer, the broker e-mailed stating that he just found out that I'd be required to put 15-20% down for a conventional mortgage, not 5%. Because of this I'd be required to use FHA if I wanted to keep 5%. We re-wrote the offer and it was accepted.

We're supposed to close at end of May. Late last week, the broker told me that it is also a requirement to have a signed tenant lease agreement in place for the current house I'm residing in, as well as a down payment and security deposit paid. It's getting to the point that if I had known these things I would've reconsidered making the offer in the first place, worried about losing the earnest money deposit if we can't close. The broker went from 99% confidence (their words), to this is going to be difficult (also their words) within a few weeks. I have great credit and good DTI ratio to be approved for both houses at the same time, so that doesn't seem to be the issue. Looking for advice on next steps. Thank you

[Jay Hinrichs]

sounds like your mortgage broker is not experienced with investor loans .. either stick with it.. or switch lenders.