New York, NY · Member since 2016 · 15 posts · 10 votes
Hi guys. I am a total baby investor still in the money saving stage. I realize that FHA loans might not be the best option so I am still not convinced on them. Ideally I would like to put down at least 10% on my first property.
But hypothetically, after I've closed on the first property and saved up 3.5% for another home, could I then apply for an FHA loan, move to the new house, stay for the required 2 years and then apply for an FHA loan for another home and continue this way?
Hello @Audra De Falco , that's not a bad choice but what about getting a regular conventional loan, it may be higher interest but you could invest faster than getting FHA. Even some conventional loans could take 5% min on dp plus closing costs, so that could be your options too.
@Audra De Falco@Franky Juwana you would need to refinance the first house out of the FHA loan as you are only allowed to have one FHA loan at a time.
That's correct if you already have FHA, but if you don't, you may want to consider regular conventional and compare both which ones that better suits your purpose.
My plan is to save, save, save and put 20% down on a multifamily and then save for a few more years and maybe do an FHA on another multifamily and live in one unit. I doubt I will be able to save 20% in the few years between for the second home, especially in my local market.
@Audra De Falco why do you say "required 2 years" for FHA? Unless they have changed it recently it is a 1 year owner occupancy requirement.
Also, if you can refinance out of the FHA loan you can use it again. If you already have an FHA loan on a property it is almost certain that they will not allow you another.