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

[@mnrois]

Great info and better clarity. New sub Thank you!

[@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

[@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.

[@TurtL96]

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

[@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