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Updated 5 months ago on . Most recent reply
![Michael Emmanuel's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2857075/1697338185-avatar-michaele653.jpg?twic=v1/output=image/cover=128x128&v=2)
Two convensional loans, one to live in and one rental at the same time.
Hello,
I have a preapproval for 3% down payment conventional loan, as I own no property.
Haven't found a house I like, I wanna be patient looking for my to live-in house, but I still wanna get a rental property where income covers all costs while looking for my own house.
My question is, can I get a normal 20% down conventional loan for the rental, and then later I get a conventional 3% down loan for my house? Or the 3% down conventional has to be for the first time ever property?
Also will I have to buy the first rental under LLC to qualify for the 3% down loan later? Can I even buy a rental straight under LLC?
Thank you very much
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![Derek Brickley's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2186062/1734223698-avatar-loansbydb.jpg?twic=v1/output=image/crop=1630x1630@81x81/cover=128x128&v=2)
Hey Michael!
Once you purchase a home regardless if it is 20% down or not you would then be capped at 5% down conventional. You could still potentially qualify for FHA 3.5% down, but if you are looking for true Fannie/Freddie financing then those are the guidelines they set. There are still down payment assistance options or portfolio products for lesser of a downpayment but your terms on those are worse. Purchasing the primary for 3% down first will lower the risk of running into DTI issues since you can use a no-income product for the investment later. If done the other way around, the terms of your preapproval will change.
With residential financing, you cannot purchase directly into a LLC (unless you look at DSCR) but that still would limit you to the 5% down conventional.
- Derek Brickley
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