Buying a multifamily residence as a second home/vacation property?

[John Anderson]

It's the long weekend, so my lender is OOO. :)

If I buy a multifamily home, and keep one unit vacant (while renting out the others) would I be in breach of my loan agreement? I understand that you have to live in the home for at least 2 weeks out of the year. 

Thanks!

[Jason Wray]

John,

If your Banker is MIA on the weekends you need a new one. First you cannot buy a Multi-family as a Vacation home its only for SFR - single family, condo's, townhomes and they require 10% down. Any multifamily 2-4 unit can be purchased under FHA with 3.5%, VA (zero down), Conventional 20%-25% down primary for primary 2-4 units depending on # of units.

There is also a Portfolio program that allows for 15% down on any 2-4 unit Multifamily investment rentals. If you buy as a "Primary Home" you need to occupy for at least (6) months and you would need to refinance to transition loan into conventional primary to investment and move out. You need (6) months of title seasoning to refinance unless you pay all cash. At the 6th month mark you can elect to do a "rate & term" refinance if the LTV is 85% or less.

You can use the same title company "Master policy" to save a good chunk of change on the refinance and ask for an AVM to avoid an appraisal (if no cash out). On the refinance you do not pay points if you use a FDIC bank or credit union so you avoid the BS fee's. So another words avoid most lenders/brokers by using same bank who did previous loan.

Feel free to message me if you need more clarity.