All Forum Posts by: Sherfeng Vue

@Sherfeng Vue

You’d may have to speak with your lender and the individual lending institution you decide to work with as their policies may be different than those I experienced.

I can say from my personal experience that you can have as many owner occupied loans running as long as you occupy the buildings for at least one year and you do it one year one building at a time. When you move out after the first year you are free to get a new owner occupied mortgage and retain the previous one. No need to refinance. It’s a method commonly referenced on Bigger Pockets as a component of house hacking.

Some lenders may require an explanation as to why you are moving, though this explanation can be quite simple. In my case, I was “too close to the highway” and the property I was moving into was further away from the highway.

@Sherfeng Vue

Hi Sherfeng,

Sorry I wasn’t more clear. I just purchased a duplex that I will be owner-occupying with 10% down. I will live in it for a year and move on to the next one. 

Thanks, 

In my market you can get a conventional loan for owner-occupied properties with as little as 3% down (with a 700 FICO) and no PMI. Typically they make up for the no PMI with higher interest rates, for example you can expect 4.5%. One bank for example offering this product is Biddeford Savings Bank

Hope that helps!

Nope, @Sherfeng Vue, you're not going to find that. Is it possible to get the seller to carry part of the DP or to bring in a capital partner.

Alternatively, you could owner-occupy the new duplex. Either refi your current property and do another FHA, or, preferably, use a low-down payment product from a local bank/CU. Will your current property cash flow?

@Murphy Frankhouser

Have you tried any credit unions? In my market their are quite a few low money down conventional morgage products available from small savings banks and credit unions.

I just closed on a duplex yesterday at 10% down, 3.625% no PMI. I know of a savings bank that has as low as 3% down at 4.5% with no PMI. There are quite a few 5% down products as well, some with PMI and some without. Granted, this may be because I live in a market that is entirely over banked.

Hello, Where are you finding 10% down for an investment property? I am looking to buy another duplex and have already used an FHA to purchase my first property. Thanks.

I'm buying a duplex in Louisville KY as an owner occupant. I understood that 4 units or less Owner Occupied could get lower down payments on the property. I am not finding this to be the case. I make too much to qualify for housing programs in my area and duplex won't go FHA. I have tried several mortgage brokers and called several banks in my area.

My options are a 3/1 ARM @ 3.75% with 10% down payment or 15% down option.

Does anyone know how to get into the 3-5% down payment area?