FHA loan limit and reverse 1031

[Maria Bocanegra]

Would a reverse 1031 exchange be a legal work around the 1 FHA loan limit rule, since it seems as though the to be relinquished property is "parked" into an LLC? I have a FHA on the to be relinquished then moved out of state. Looking to purchase replacement with an FHA. Thx! M

[Wayne Brooks]

If you are selling the FHA financed property anyway, it doesn't matter....you sell it, have no FHA, then use FHA again. What am I missing? It is more clear now, the FHA financed property you would be selling is no longer your primary. In any event, you can't use a 1031 to buy a primary residence......could you use a 1031 for "3 out of the 4 new units", and owner occupy the 1 unit, I don't know. @Bill Exeter will know.  If you didn't want to sell the FHA financed house, you could of course refi out to conventional, non owner occupied, to eliminate the current FHA loan, then buy with an FHA loan.