Mortgage Do's And Don'ts
Mortgages can be tricky, and it's easy to make mistakes that can end up costing you dearly. That's why we've put together this list of Mortgage Do's and Do not's to help you navigate the process with ease - and a little bit of humor.
DO: Shop around for the best mortgage rates
DON'T: Assume your bank will give you the best rate just because you have a checking account there. Remember, loyalty is a two-way street.
DO: Have a budget in mind
DON'T: Get in over your head. Just because you can technically afford a million-dollar mansion doesn't mean you should buy one. You don't want to be house-poor and unable to afford groceries.
DO: Get pre-approved before house-hunting
.
DON'T: Assume you'll be approved for a mortgage just because you have good credit. Pre-approval is important because it gives you a better idea of how much house you can afford and shows sellers that you're serious.
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DO: Consider your future plans
.
DON'T: Assume you'll live in your new house forever. Life happens, and you may need to sell sooner than you think. Make sure you're not getting into a mortgage that you can't realistically afford if you need to move in a few years.
DO: Get pre-approved before house-hunting
.
DON'T: Assume you'll be approved for a mortgage just because you have good credit. Pre-approval is important because it gives you a better idea of how much house you can afford and shows sellers that you're serious.
.
DO: Consider your future plans
.
DON'T: Assume you'll live in your new house forever. Life happens, and you may need to sell sooner than you think. Make sure you're not getting into a mortgage that you can't realistically afford if you need to move in a few years.
DO: Read the fine print
.
DON'T: Sign on the dotted line without reading the terms and conditions. There may be hidden fees or clauses that could come back to haunt you later.
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DO: Be prepared for unexpected expenses
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DON'T: Assume everything will go smoothly. There may be unforeseen expenses, like a leaky roof or a broken furnace, that can quickly drain your savings. Be sure to budget for these types of surprises.
DO: Read the fine print
.
DON'T: Sign on the dotted line without reading the terms and conditions. There may be hidden fees or clauses that could come back to haunt you later.
.
DO: Be prepared for unexpected expenses
.
DON'T: Assume everything will go smoothly. There may be unforeseen expenses, like a leaky roof or a broken furnace, that can quickly drain your savings. Be sure to budget for these types of surprises.
DO: Have a good sense of humor
.
DON'T: Take everything too seriously. Yes, buying a house and getting a mortgage can be stressful, but try to find the humor in the situation. After all, laughter is the best medicine for a stressful day.
.
By following these Mortgage Do's and Do not's, you'll be well on your way to successfully navigating the mortgage process - with a smile on your face. Good luck, and happy house hunting!
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🏡 Duplex, Triplex & Fourplex Financing Secrets – FHA vs Conventional vs DSCR 💰
🏡 Duplex, Triplex & Fourplex Financing Secrets – FHA vs Conventional vs DSCR 💰
📊 How to Buy 2–4 Unit Properties with Low Money Down (FHA, Conventional & DSCR Guide) 🚀
🏡 Financing Duplexes, Triplexes & Fourplexes – Conventional, FHA, and DSCR Explained
If you’re serious about building wealth through real estate, 2–4 unit properties (duplexes, triplexes, and fourplexes) are one of the most powerful entry points.
Why?
Because they sit in a unique lane:
👉 Residential financing rules
👉 Investment-level cash flow potential
And the way you finance them determines whether the deal works—or fails.
Let’s break down the three primary options:
Conventional, FHA, and DSCR loans.
💡 Why 2–4 Units Are a Strategic Sweet Spot
These properties allow you to:
·Live in one unit and rent the others (house hacking)
·Qualify using rental income
·Access lower rates than commercial loans
·Scale into investing without going “full commercial”
👉 This is where smart investors start thinking like lenders.
🏦 Conventional Loans (Best for Strong Borrowers)
Key Highlights:
·Down payment: 5% (owner occupied) –25%(investor)
·Credit: Typically 680+
·Income: Full documentation required (W-2, tax returns)
·Can be owner-occupied or investment
Pros:
✔ Lower long-term rates
✔ Flexible property types
✔ Strong resale/refinance options
Cons:
❌ Strict underwriting
❌ DTI (debt-to-income) can limit approval
💬 Insight:
Even with high credit, deals get denied when DTI is too high—structure matters more than score.
🏡 FHA Loans (Best for First-Time Buyers & House Hackers)
Key Highlights:
·Down payment: 3.5%
·Must be owner-occupied
·Can use rental income from other units to qualify
Pros:
✔ Lowest barrier to entry
✔ Ideal for first-time investors
✔ Flexible credit requirements
Cons:
❌ Mortgage insurance (MIP)
❌ Must live in the property
💬 Strategy Play:
Buy a fourplex with FHA, live in one unit, then refinance into conventional later.
📈 DSCR Loans (Best for Investors Scaling Fast)
Key Highlights:
·No personal income required
·Based on DSCR (Debt Service Coverage Ratio)
·Typically 20–25% down
Pros:
✔ No W-2s or tax returns
✔ Scales easily across multiple properties
✔ Faster approvals
Cons:
❌ Higher rates
❌ Requires strong property cash flow
💬 Investor Mindset:
This is where you stop qualifying as a borrower—and start qualifying as an asset operator.
⚖️ Which Loan Is Right for You?
Scenario
Best Loan Type
First-time buyer
FHA
Strong income + long-term hold
Conventional
Investor scaling portfolio
DSCR
🚨 The Real Risk Most People Miss
It’s not the loan.
It’s the structure.
Most deals fail because:
·Rental income isn’t calculated correctly
·Taxes and insurance are underestimated
·Reserves aren’t sufficient
·Exit strategy isn’t clear
👉 This is why “Structure Beats Rate.”
🧠 Final Takeaway
Duplexes, triplexes, and fourplexes are one of the fastest ways to:
·Build equity
·Generate cash flow
·Transition into full-scale investing
But only if you structure the financing correctly from day one.
📞 Call to Action
If you’re thinking about buying a 2–4 unit property:
💬 Comment “MULTI” or reach out directly
Let’s structure the deal the right way from the start.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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