Updated over 9 years ago on . Most recent reply
Using conventional 10% down mortgage while house hacking
Hello all, this will be my first post on BiggerPockets, I am very excited to be part of this community, what an excellent resource! I just purchased my first duplex in the Kansas City area. I financed the property with a 10% down conventional loan. My current plan is to live in the duplex, make some cosmetic improvements (one side needed some work) and repeat. I am getting some conflicting information about what will be required when I go to make my next purchase. Will I be able to repeat this scenario with a 10% down loan or will I need to put down 20%? My understanding is that generally 20% is required when purchasing an investment property (not owner occupied), but down payments can be 10% or even a little less if owner occupied? Is this correct? If I live in the first property a full year and repeat am I likely to have any issues having an existing loan that is not for my primary residence? I expect to have close to 20% equity in the duplex after the first year and renovations. Is there any risk of the lender calling the loan due? Thank you in advance for your help, -Ian Reeves