All Forum Posts by: Jimmy Lieu

@Jimmy Lieu

Hi Jimmy, I’m an investor and general contractor here in Bend. I moved here a little over three years ago from the east coast and have loved living/working/investing here.

Feel free to reach out anytime if you have any questions, just want to connect, or if you need a hand scoping out properties. I also do anything from small to large renovations/repairs, additions, new construction, etc. if your house hack need some work!

@Megan Broom

Conventionally are also owner-occupied unless it’s for an investment property (where the loans are about 1% point higher).

The fha and house hacking and first time buyers tend to go hand in hand because of “socioeconomic” factors. New buyers tend not to have cash for a down payment and poor credit score just because they don’t have a long credit history.

It’s possible to qualify for both, but the rate will depend no your credit score. One generally deciding factor is the mortgage insurance. If you have excellent credit, the conventional loan will be cheaper because you can get cheaper insurance on the private market. With a loan credit score, you are a higher risk which where the govt steps in and the fha loan has cheaper mortgage insurnace.

One significant advantage in my mind for the conventional is the pmi can come off and there is no funding fee. Really any govt backed loan the mortgage insurance stays on for the life of the loan. So, in reality the 0.75%-1% or so mortgage insurance just raised your effective rate, sort of.

Does that help clear it up?

@Joseph Griffith the big difference is in expensive markets to pull of a house hack you have to get creative to pay for an expensive property: student rental, corporate housing, rent by the room, VR, etc. whereas you can break even in a less expensive market by simply placing a long term tenant in the unit/s.

Hi Jimmy, 
I have some great contacts for you in Bend, OR and am well versed in the multifamily market here. I've helped several clients do the house-hack, check out the referral on my profile for a prime example of a client i helped house-hack a 4-plex and force appreciation of about $150,000. @Devin Creek is a great resource in the area for handyman and GC work too. 

I also helped @Frankie Lesowske take this approach as well. 

@James Walsh I work mostly with refinances but if I was doing it myself (going to start again later this year in PHX) I would shop lenders in your area and look for a conventional loan that will let you do a 3 to 5% down payment. With a conventional on a duplex you can borrow into the 650K range and it is still a conforming (not jumbo so better pricing/rates). You will have private mortgage insurance on the borrowed funds above 80% only and it can drop off without a refinance. 

ALSO most people dont know but an FHA loan has monthly Mortgage Insurance Premium (MIP) but they also charge a 1.75% insurance premium on the front of the loan. Lastly, rates with the FHA can be more than what a competitive lender will offer on a conventional loan

Only real time to do FHA is if your credit is under 640 but if that is the case you down payment would be better spent on fixing and building your credit and waiting to buy something till you get it fixed/improved.