House hacking/loan type

[Cameron Mitchell]

I am 18 looking to buy my first house when I graduate high school. I have taken a couple steps working towards it such as reading books and wondering BP. I have a couple questions I haven’t been able to find answers to for awhile. 1. First one being when you’re house hacking, what does the loan look like? When I talked to a mortgage banker she explained to me that in order for me to rent the house out or flip a house I have to get a “investment loan” which has much higher rates. This makes sense to me but if I’m house hacking do I need to take the investment loan or could I do a conventional?

2. Also while talking to that banker she suggested that I live in a house for awhile to know what its like. She mentioned a loan that I would have to do zero down because I’m younger I could qualify for that. If I did this zero down loan could I refinance that loan in the future to a investment loan and rent the house out after awhile? Or even while I’m living there could I rent out a couple rooms with this zero down loan?

3. While house hacking or starting out how does the legal aspect of it work? I hear on the pod casts all the time that they are involving attorneys and creating contracts, while I’m starting out house hacking do I need to do this? If so how much and where do I find this?

Thank you for the help and the time!

[Nathan Gesner]

Your banker is clueless. I highly recommend you visit at least three different lenders to see which one understands this basic premise and can explain it to you correctly.

You will be occupying the home so this would qualify for a Fannie/Freddie loan with less than 5% down. AS long as you live in the home, you can rent out other space. After living in it for a year, you can move out and rent the entire property without having to refinance it.

The only legal document you'll need is the lease agreement and applicable addendum (pets, roommate rules, etc.).

Go to the BiggerPockets bookstore and buy "Set For Life" by Scott Trench and "House Hacking" by Craig Curelop. It's money well spent and will give you the foundational knowledge you need to do this right.