2 Different Loans within 2 Months

[Aaron Daniel]

What's up BP??

I am looking to buy my first absentee landlord rental property with a conventional loan by early June. I currently live in an apartment and my lease is up in August. My Fiancé and I have also been talking about moving into our first primary "home" in August. 

My question is: 

All capital aside needed to secure the down payments, is it likely I can secure 2 loans within 2 months even though I have never purchased a home? I would intend to purchase the rental property in June with a 20%-30% down conventional loan, then the property in August (hopefully small multi-family) with an FHA loan and 3.5% down. Thoughts on plausibility I can obtain these loans?

Thank you!

Aaron

[Nick Marrone]

It's not impossible. If you are buying the investment property first, it will almost certainly need to be rented out by the time of applying for your primary so that the income covering the mortgage can be proven and does not affect your DTI. It is possible some lenders may want to see timely payments as well for a certain amount of time (especially with some Covid guidelines).

I know there are private money lenders out there that will lend to first time investors at about 25%LTV for a purchase. The rate will be higher than a conventional loan though. You could close the investment in an LLC, and most of those lenders won't report the mortgage to your personal credit report. That way, when applying for your primary you don't need to worry about having the monthly income to cover both mortgages. Not sure if it worth it for a first time investor to go this route, but it is an option.