All Forum Posts by: Jay Hurst

with two points (assuming good credit etc) I would be low's 5's for a non-owner duplex, but it would be with 25% down. so, it really just depends on if you are ok with the higher rate but lower capital requirement, or looking for the lowest rate.  There is something to be said for both approaches. 

have you clarified with the lender that they will allow for a 10% down on a non-owner occupied duplex? 

ANY conventional lender should be able to do this. The link above is directly from Fannie Mae site. Nothing tricky. We do them ALL the time. Closed one yesterday in fact. 

You can put down 15% on a single family home using a conventional loan. We do it all the time for borrowers.  This allows you save capital for the next deal. 

https://singlefamily.fanniemae...

You do not have to be a first time home buyer for either FHA or VA. So, if you current home that you owner finance still has VA financing on it, then you could potentially do a FHA loan but not a VA. And vice versa. But, if you still have financing the existing loan would be considered debt.

 You purchase a non owner occupied single family with 15% down.

We have a product that does NOT have the conventional loan level pricing adjustments (LLPA's) that jack up the pricing on a conventional non-owner occupied property with 20% down.  As you can see below the LLPA for a 20% down investment property is 3.375% in addition to any other LLPA your file might have.  These are why it is hard to answer "what is the rate?" because it depends on what your file's LLPA's are.  The 3.375% does NOT mean the rate is 3.375% higher because it is added to an originators back end pricing, but it does mean about 1% higher in todays rates. So, a product without these LLPA tend to be about 1% better right now.

Loan level pricing adjustment matrix

 We do it all the time!  Fannie has always allowed it.  https://singlefamily.fanniemae...

 Have you looked into lender paid MI?  It is often much cheaper option then paying the MI.

You will get a better rate on your primary home then you will on your investment property, as well as able to go up to 80% loan to value on your primary compared to 75% on the non-owner occupied property  but of course some folks like to keep their primary out of your investment.  You would also want to consider the rate on your current investment property. if you can get close or lower then your current financing that might help decide. 

As for the down payment on the new house you can put down as little as 15% on a single family non-owner occupied property, not the above mentioned 20%.