House Hacking facts to consider

[Stephen Rinaldi]

I think I get a call 3-5 times a week about a client who wants to use a FHA or VA loan on a multi-unit, this is because in many ways its the easiet way to become an investor or to live in a house without a monthly cost. I figured I'd share the bullet points of my "House Hack" conversations:

*FHA allows a 3.5% down payment on properties up to 4 units, VA 0% down

*Must live in the property a minimum of 1 year

*Yes clients could do this multiple times, its process but it can be repeatable

* FHA has a self sustainability test, VA does not

* Yes you can get still seller's assist. 6% FHA even more VA

* Be careful on the appraisal, make sure that there are appropriate comps

* Contrary to popular belief, primary residence duplex's on a conventional loan can put down 15% down, sometime this makes mathmathematical sense or solves the self sustatinability issue.  

I always think its important to partner with a lender and Realtor that has experience with these loans, as when mistakes are made it can be costly.