Other Low Money Down Loan Options Other Than FHA-5%?

[Jheanell R.]

Hi Guys,

Currently, I own an owner occupied duplex that I bought with FHA. I am looking to buy another multifamily, preferably a Fourplex, and reside in one of the units. I am currently talking to a mortgage broker but he cannot secure another FHA for the Fourplex. He advised it wouldn't make sense to refinance the current duplex (to get out of FHA so I can use it again) because my rate was so good (3.5%) and current rates have gone up. So, I'm stuck with the FHA I guess. What are my other financing options with low money down for multifamily (owner occupied)? I'm not a veteran and don't live in a rural area so those loan options wouldn't apply to me. I need a loan around 5% because I don't have much down payment. I tried looking at Homepath.com but they don't have any multifamily listings. I heard about Freddie Mac. Do they cover mutli's? And are there any other conventionals besides Freddie? Your assistance would be greatly appreciated.

[David Hooper]

HomeReady is 85% LTV on a 2-unit and 75% LTV on a 3-4 unit.

https://www.fanniemae.com/content/faq/homeready-fa...

@Jheanell R., Even though you get hit on the rate if you refi your current FHA loan, that might be the "cost of doing business" in this case of pursuing additional multi-unit properties. The good news is, if there has been any appreciation and you're just doing a rate/term refi, you could drop PMI. Even if not, PMI will eventually fall off on the new loan.

Your mortgage broker/lender is probably well-intentioned, but is focused on the best loan "objectively," vs, in the context of your broader real estate investing goals.