Rule Change! Can now do 5% Home Possible if already own property

[Henry Lazerow]

Great news for all my house hackers out there! Starting 10/29/18 the new rules take effect where you can do home possible conventional 5% down on 2-4 units while already owning other property. Previously this program was only available to people who did not already own residential real estate. 

The benefits of 5% down home possible over FHA.....

1) The PMI falls off at 20% equity. This is huge saving over the life of loan vs FHA financing where you stuck with PMI

2) Offer is viewed as stronger by sellers. For right or wrong many sellers do not like FHA.

3) Larger loan limits as shown below.

With most lenders 75% of rents will be counted as income for helping increase your purchasing power like always. 

Loan Limits

2 units: $580,150

3 units: $701,250

4 units: $871,450

Happy investing everyone :)