5%-10% conventional loan issues

[Scott Goulet]

All, 

I am an Investor/ Real estate agent out of Broward county in South Florida. I also have a w2 job and have worked there for 3+ years. I own a 3 bed 2.5 bath townhome which can rent for about $1500 per month. I am looking to purchase a second home and either make my primary residence my rental and move into the next one or buy a property as a straight investment prop. 

Here is the problem: i just spoke with my mortgage broker, and he said unless he can prove a clear upgrade by me moving to the second property there is no way to put anything less than 20% down. I have been saving consistently for the past year awaiting my opportunity to buy my second property, but this puts a big thorn in my side. 

Please if anyone has a tip for me that would be amazing. I really don't want to go hard money either. That scares me. 

Thanks in advance! 

Scott G 

Broward county realtor

[Michael Cohen]

Fannie Mae's HomeReady is 95% LTV and allows you to have an ownership in another property. Doing one for a client now.

What your mortgage broker is talking about is if your vacating home is an FHA loan, you wouldn't be eligible to purchase with another FHA loan unless there was a clearly identifiable reason for the purchase, such as home size upgrade due to family growth.