House Hacking Just got a LOT Cheaper - New Conventional Rules 2023

House Hacking just got a lot cheaper with Conventional Loans. In fact you might want to skip the FHA loan entirely because a conventional loan house hack is now so much easier to do with these new rules from Fannie Mae.
Starting on November 18, 2023 Fannie Mae made a huge update if you're house hacking a 2-4 unit property. Now you only need 5% Down to House Hack a Multi Family property with a Conventional Mortgage.
In this video you'll learn the THREE things every house hacker or first time home buyer will need to know to take advantage of these changes and save a TON of money on your new house hack.
#firsttimehomebuyer #mortgage #realestate
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Boring legal stuff:
Licensed by the California Department of Business Oversight NMLS 1410686, a Licensed Representative of Clear Mortgage Capital, Inc. NMLS 1935005 Equal Opportunity Lender. All thoughts and opinions are my own, not of my company. Any rates, terms, programs, etc. mentioned in these videos are hypothetical and are not an advertisement or promise to lend. Your actual mortgage terms might vary based on qualifications. Always consult a licensed mortgage professional in your area.

[@mnrois]

Great info and better clarity. New sub Thank you!

[@TurtL96]

Nobody gonna pay 2400 a month for a apartment. When a house is 2000ish

[@naturalhonor9818]

Mortage insurance or PMI is not imposed for the life of the FHA loan. It is only imposed until you reach a 78% loan to value ratio. Once you pay down about 22% of the loan, PMI drops off automatically.

[@CatonDelRosario]

You’re thinking conventional guidelines. This was the case for FHA loans before 6/3/2013 but any loans originated after that date are for the life of the loan unless you put 10% or more down then it’s 11 years.
Otherwise the only option would be to refinance.
Source: www.hud.gov/program_offices/housing/comp/premiums/prem2001
www.rocketmortgage.com/learn/fha-mortgage-insurance-removal

[@Emanuelethio]

hello, I want to rent out a bedroom in my FHA home. Is there a way to protect myself legally as a rental property? is it possibe to put the house under a LLC?

[@CatonDelRosario]

I would definitely seek a tax professionals advice here. As far as mortgages go, they must be obtained as an individual, not as an LLC

[@JUSTYN23]

So with the conventional loan and everything do I need proof of income to be able to do this or can I do it and use the income that the rent will bring in to be able to qualify for it?

[@CatonDelRosario]

You still need to income qualify but the rents can be used to help.

[@JUSTYN23]

@@CatonDelRosario what is the income requirement. And how far do they go back to search it? If you know

[@CatonDelRosario]

@JUSTYN23 you need a two year work history not necessarily same employer but same line of work. Ideally your debt to income ratio should be no more than 45% including the new mortgage payment so it depends on the price of the home you’re buying and how much you’re putting down etc.

[@Jr2728]

This is starting to sound a lot like 2008 again except this time with multi-family homes😅😅

[@CatonDelRosario]

It could be a problem if tenants start leaving en masse but these are still full document loans. 2008 had a lot of adjustable sub prime stuff that went sour.

[@JC-nl3nh]

they are building massive amounts of rentals which will drive rent down more @@CatonDelRosario