Good reasons to give lender for another 5% loan

[Eric Petersen]

Hey my fellow cool people. 

I've got a dilemma that I hope the good people of the forums can help me work through.

I bought a townhome 1 year ago that I lived in but also I rented 3 rooms out to individuals as well. I bought it with a 5% down conventional loan. I'm moving out soon and will fully rent it out.

Here I am 1 year later looking to buy a brand new condo that won't be completed until December. I'm currently in the pre-approval process. I've learned that in order to get another 5% loan on this one, the underwriter wants a good reason for the new loan. The general reasons for getting this new loan don't really work for this case:

1) Moving closer to work - I'm not as the condo is within the same city as my day job
2) Upgrading the property - not true as I'm going from a 1800sq ft townhome to a 1000 sq ft condo

Is there anything else I should consider in what an underwriter would consider a good reason to approve of a new 5% down conventional loan? The only thing I can come up with is that it will help shave 10 minutes off of my commute due to traffic patterns being more conducive.

What have you done in the past to find truthful yet creative reasons to allow for new primary resident loans even though you have many others? Any other techniques you suggest? 

[Chris Mason]

Originally posted by @Eric Petersen:

Hey my fellow cool people. 

I've got a dilemma that I hope the good people of the forums can help me work through.

I bought a townhome 1 year ago that I lived in but also I rented 3 rooms out to individuals as well. I bought it with a 5% down conventional loan. I'm moving out soon and will fully rent it out.

Here I am 1 year later looking to buy a brand new condo that won't be completed until December. I'm currently in the pre-approval process. I've learned that in order to get another 5% loan on this one, the underwriter wants a good reason for the new loan. The general reasons for getting this new loan don't really work for this case:

1) Moving closer to work - I'm not as the condo is within the same city as my day job
2) Upgrading the property - not true as I'm going from a 1800sq ft townhome to a 1000 sq ft condo

Is there anything else I should consider in what an underwriter would consider a good reason to approve of a new 5% down conventional loan? The only thing I can come up with is that it will help shave 10 minutes off of my commute due to traffic patterns being more conducive.

What have you done in the past to find truthful yet creative reasons to allow for new primary resident loans even though you have many others? Any other techniques you suggest? 

 There's a reason. You just gotta find it. The truth shall set you free. Maybe you're moving to a condo because it turns out that yard work isn't for you, and your dog died anyways so no more need for a yard, so why not save 10m on the commute and stop breaking your back on yard work.