Conventional How did you add value to the deal?

Instead of doing FHA on a duplex I would consider doing a conventional 5 or 10 down loan on a SFH and renting out the rooms.

For one thing, you won't be able to get a conventional loan on a house in the name of your LLC.

Because appreciation is running so hot, when he reached about 20% equity we refinanced him into a conventional loan in 202- and removed PMI completely.

These sellers either are not sophisticated enough to require proof of funds, or have properties difficult to sell conventionally and are willing to forgo POF in hopes of making a deal.

Scenario:  He is self-employed and he took a hit in 2020 b/c of COVID which is impacting his getting a conventional loan. 

My issue is that I am currently at 10 house loans with Fannie Mae, but selling this house will drop me down to 9, so I should have room for another golden ticket mortgage spot.Now I want to buy two houses and tactically it would be advantageous for me to use a DSCR Loan for the first house because its an existing property, and the the second house its a new construction tract home that will only take conventional financing.Under Fannie/Freddie rules would lender view the DSCR as "Loan Number 10", and I wouldn't be able to get a Fannie Mae conventional mortgage? 

Conventional FinancingHow did you add value to the deal?

Conventional How did you add value to the deal?

Conventional and FHA will likely always be the lowest rates you can get.