Second Deal - brainstorming lending ideas

[Sean Lynch]

HI BP,

Hoping to brainstorm with all of you on ways to finance my second property. 

My brother and I purchased a property last year and have been living in it/renovating. Things are going well, we'll be renting it out in July (ish) and will be moving on to a multi-family next to house hack.

We did our first property through FHA and understand we can't do that again. Below are some options I would like to dig into, any advice on which ones to stay away from/ are the best? Are there other options out there that I'm not thinking of? We are looking to get creative here so please share any success stories you may have.

Options considered:

- USDA Loan

- Conventional - (Just not realistic in the short term due to down payment requirements)

- HELOC

* Is there any way to get a line of credit on our first property? Our renovations will add some equity for sure but I doubt it will be enough.

- Hard Money Lenders

- Personal/Secured loans for Down Payment

Any advice is appreciated. 

Thanks BP

Sean

[Sean LeBlanc]

@Sean Lynch if you meet the income limits, the conventional products Homepossible (freddie mac) and Homeready ( fannie Mae) allow for 5% down on 2-4 unit properties, is a conventional product. The same product allows for a 3% down payment on a single family.

If you google Homeready income eligibility, you will find the income limit lookup tool, where you can enter the address and see the income limit. Certain areas have NO income limit. 

Everyone knows about FHA for multi's but conventional is an option too, this gives buyers who already have an FHA loan,an opportunity to buy another owner occupied multi with low money down.

Let me know if I can help. 

Thanks!