House Hacking Advices Needed

[Richard Qiao]

So I'm currently living in Massachusetts, considering a multi-unit house hacking opportunity in New Hampshire. The lender agent denied the FHA loan application, because my current residence is much more expensive than the house I'm going to buy. Is this reasonable? How should I proceed with house hacking opportunities?

[Patrick McCann]

Quote from @Richard Qiao:

So I'm currently living in Massachusetts, considering a multi-unit house hacking opportunity in New Hampshire. The lender agent denied the FHA loan application, because my current residence is much more expensive than the house I'm going to buy. Is this reasonable? How should I proceed with house hacking opportunities?

I do not know if that’s actually a technical reason for the lender to disqualify you from using an FHA, maybe someone else will know. Good news is though, you don’t have to use an FHA. Very soon there is a new Fannie Mae/Freddie Mac loan product coming out for 5% down conventional loans on 2-4 unit properties and rental income can be included towards your income. I believe it launches next Monday 11/6. Maybe some lenders will chime in that know more than I do or a google search could give more info. You would think a good lender would mention other loan products to you that could work especially considering the number of mortgage applications are down and lenders don’t get paid by not closing loans. 

I've always heard it's good to talk multiple lender. I've also heard that different lenders can have different interpretations on the FHA guidelines or have their own guidelines beyond the FHA ones.