Financing for second home investment property

[Frank Salas]

Hi I would like some advice on trying to finance a second investment property in Massachusetts . I currently own a 4 family property witch I financed with a FHA loan. Now I am currently looking to buy a second multi family property using a conventional loan. The lender I am trying to go through is telling me I will need 25 percent down, 6 months reserves on both properties and can not receive a gift of any amount for the second property. If anyone has any advice on how to finance my second property or knows a mortgage company/bank that has better guidelines I would appreciate it!

[Jimmy Murray]

Hi Frank Salas

I've actually been in your exact shoes.

I bought my first 4-family in 2012 with an FHA product. Started generating Cashflow. Then decided I wanted to buy another.

The market had turned around a bit by 2014 and I was able to refi into conventional paper.

This allowed me to buy my second 4-family with only 3.5% down.

Based on my knowledge of the Massachusetts market and how quickly it has been appreciating. My guess is you could provably refinance your first house and come in with FHA paper again on your next one.

Hope this helps!