All Forum Posts by: Katrina Sokolosky

@Katrina Sokolosky sell the sf. Use the proceeds to buy a 3 family. Stay there for a yr. Save like crazy and move into a sf of ur own keeping the 3 family. 3 family should cover the mortgages for both. 3 family is the best way.

I agree with @Reid Chauvin on this one. Would definitely go look at other lenders. 2-3 more actually. You may find they don't support those same rules. 

But in general you can purchase a new 2-4 unit that will be your primary using FHA. It's not a bad idea to consider Conventional either. Always look at all your options.

Cheers!

@Katrina Sokolosky, I am not a lender or an underwriter, but an agent who has worked with a lot of FHA house hackers. Some of those clients have purchased two multi family properties using FHA. They have all had to explain why they are moving from the originally purchased property to the underwriter. The issue that may come up, as I have seen in the past, is that you are moving from a SFH to a MFH. It is more typical for people to move in the reverse order, so red flags may arise in underwriting. They may also think you are buying strictly an investment vs an actual residence which is what your lender talked about. The area/zip code you move to typically has to be better than where you currently live. I'm not familiar with where you live or are trying to move to, so you'll have to use your best judgement.
As an example, you could explain that the cost of living is higher where you are moving to, and that you want the additional rental income to offset costs. You would have to prove that of course, and the underwriters do look into this since it is a Gov backed loan. Hope this helps! 

Just want to make sure im clear....you already used an FHA loan on your current home?

@Katrina Sokolosky - how long have you owned your current residence? If less than a year, I guess I can understand the hesitation here...If you are truly planning on moving into this multi-unit property in the Adirondacks then you are absolutely entitled to putting 3.5% down with an FHA owner-occupied loan (as long as you meet the ability-to-repay qualifications).

I would recommend speaking with another lender who services that area. Sounds like this bank has their own unique overlays that other lenders who offer FHA loans will not have.

@Katrina Sokolosky - I don't know why this other lender is telling you that the property cannot be a duplex or triplex. You can absolutely buy a 2-4 unit property with an FHA loan, and the units can be attached. As long as there is not a non-occupying borrower on the loan, you can put 3.5% down.

An FHA loan will allow you to put down only 3.5% whereas a conventional loan would require 5% down for owner occupied. If your current residence is on a conventional loan you shouldn't have any issues purchasing the duplex with an FHA, 3.5% down.