All Forum Posts by: Michael Cohen

Hi @Armando Melchor - Couple of issues you may not want to hear (sorry to be the bearer of bad news...):

1. Government-backed loans (FHA, VA, etc.) are for owner-occupied only and cannot be used for investment properties. So you couldn't purchase the new place with FHA or VA loans.

2. All lenders I know of do require 20% down for investment properties.

3. A HELOC cannot be used for down payment because it is required to be repaid and down payments cannot be a loan which requires repayment. Hypothetically you could do a cash-out refi and use the funds that way, but it doesn't sound like you have enough equity to do so.

Have you considered alternative lending (hard money, investors, etc.)?

Hi @Spencer Glaser - getting an FHA loan within the same year as a conventional shouldn't be a problem. However, what you're talking about is carrying two notes; one being an investment property (conventional) and the other being an owner-occupied primary residence (FHA.)

Ultimately, the issue will come down to your debt-to-income to determine how much you can afford. This will be based on your current employment income, plus 75% of your expected rental income. Rental income can be verified through an actual lease, or agreement to lease. It can't be fair market prices. They only use 75% of total income to account for costs, maintenance, non-occupied time, etc. Some lenders might have different overlays (i.e. additional requirements beyond what FHA stipulates) so talk to a couple of local lenders.

 Hi Stephen - There are several ways to mitigate closing costs, including lender-paid closing costs, seller concessions, etc. As long as your realtor and lender are aware that's your desire they can structure the deal correctly. Both methods are very common.

Hi Pete - Primary lending institutions (big banks, mortgage lenders, etc.) are required to "source & season" your funds for down payment, so they will need to know where the cash came from. For conventional residential loans (conforming, FHA, VA, etc.) down payment funds cannot be borrowed with the expectation of repayment.

Agreed, Brent!  That's the goal.  :)

Ultimately, as everyone else alluded to: you cannot have two FHA loans currently unless the rare circumstance about employer-sponsored moves > 100 miles. Your strategy should be to refinance your FHA property into a conventional (not an issue since you have the equity) and then purchase the new quadplex using FHA.

Very few lenders do offer VA or FHA Construction-to-Permanent Financing. I echo Ryan Murphy's advice and would recommend AnnieMac Home Loans.

Many lenders (not big banks) will be able to use verified foreign income to show income history - provided you stay within the same industry.