All Forum Posts by: Michael Facchini

Correct, if you were buying another multi-unit and didn't qualify for conventional financing at the down payment you're shooting for, and FHA was the only option, you would indeed need to refinance out of the FHA loan on the old property....which might not be a bad thing, but again might not be needed. We could look at the recent comps in the neighborhood together (for the old place) and see what the value MIGHT look like...and then order the appraisal via the loan. An appraisal ordered separately by you wouldn't be admissible thereafter in processing of a mortgage loan....a new one would be needed (waste of money).

Typically you'd want to wait 6 months before refinancing, getting a new appraisal, etc....which you have passed that milestone. So, could be worth looking at. But again, might not need to refinance out. Depends on what your rate is there, if it's better to keep that FHA loan, and if you can procure a new multi-unit with low down payment financing via conventional channels. The answer to that depends on where the new property is located exactly....

Would be happy to discuss options with you if you like. The biggest variable, as I was saying above, is where the property is located. If it falls within a certain census tract (which is neighborhood and block specific), we might be able to provide you financing with as little as 5% down on a primary 2-4unit purchase. Otherwise you are correct....FHA is your only option on a primary multi-unit with less than 20% down. That said, I am closing multiple deals per month in the city on multi-unit primaries with less than 20% down and avoiding FHA. We are a direct lender and a broker with a variety of channels to execute these types of transactions. Investment multi-units are about half of my business.

To confirm what Casey mentioned above, you can indeed rent out the old unit, turn it into an investment, and we count that rent in the new loan qualification to help alleviate the debt ratios.  Hope that helps!   

Hi Lucas! So, if you're looking to purchase a new multi-unit as a primary residence (and perhaps rent out your current apartment and keep the current 2flat), you might be able to buy a new multi-unit with as little as 5% down on a conventional loan. IE, not another FHA loan. But again, would need to become your new primary residence. This does depend on the neighborhood and what census tract it's in, as companies like mine have access to special financing in certain census tracts. Would moving be an option now that your 2flat is underway?

I am a lender in Chicago (mostly residential 1st mortgages and some commercial) and I personally use 1st Merit/Huntington.  They are competitive in rate, but also more flexible than some of the aforementioned lenders.  Happy to share the loan officer's info I use personally if anyone is still in need...