All Forum Posts by: Dominic M.

@John Lyszczyk

That is correct. That's great, I assumed a lot of people would just move out and rent the unit. I agree with playing by the rules and guidelines I wouldn't want to add any risk. My question is: If you reach 80% LTV under one year, at that point can you legally move out? Or, do you have to refinance into a non owner-occupied loan, then move out?

@John Lyszczyk

And the conventional loans can qualify for 3% down I believe. 

Essentially, between appreciation (especially with BRRR) and principal pay down, 80% LTV could be achieved relatively quickly.

EXAMPLE: if you can reach 80% LTV in under the one year occupancy requirement for a house hack and want to house hack a second time immediately. What would your strategy be? Can you move out and rent the unit without a refinance?

@John Lyszczyk

Okay that's good to know. Did you explore or weigh up Freddie or Fannie loans? I believe with the conventional loan, when you hit 80% LTV you can remove the PMI. Is this possible with a FHA loan?

There is a lot of conflicting information out there on making an offer, likely due to the type of property and market you are investing in. However, for 2-4 units with a Freddie or FHA loan at 3-3.5% down, what terms and contingencies would you include or remove? What is your timeline? What mistakes have you came across?

@John Williams

You're the man, thank you. 

@John Williams

Thank you for your response, that's great you are using the VA loans. In my instance would you recommend a Freddie Mac loan over the FHA?

@John Lyszczyk

Appreciate the advice. So after one year of occupancy you can move out and rent the unit you were living in, without any changes or implications to the first loan. But you need to qualify for the second FHA or Freddie loan etc. to house hack again assuming the DTI qualifies.

Hi BP community, 

This maybe a common discussion, yet I am unable find concrete data or someone who can share their knowledge on a second or multiple house hacks. Here we go: 

Correct me if I am wrong but, FHA loans and Freddie Mac loans require you to live in a 1-4 unit house for a minimum of 1 year, unless in specially defined circumstances. EXAMPLE: you have lived in the property for 1 year and want to rent it out. You house hack a second property and live in that property for a year, and repeat.

What are the implications and your options for the original loan? Can you get a second FHA or Freddie Mac loan with 3-3.5% down? What is your best strategy for multiple house hacks?