FHA Restriction rule???

[Michael Solomon]

I was talking to my lender yesterday about refinancing out of my Fha loan after I buy my first multifamily property to a conventional loan. So that I can use the fha loan again to finance my next purchase. He tells me that I won't be able to use an fha loan again on a property within 40 miles of each other. I haven't found any evidence of this. 

Has anyone else heard of this rule?

Any help is appreciated, thank you. 

[Jacob Walter]

FHA do not like investors like us. The loan is designed to get first time and lower income home buyers to purchase.

There are two exceptions to the FHA rule of having only one FHA backed mortgage.

1. If you are moving to accommodate your commute to work

2. If you can provide evidence that your family is out growing permanent residence.
(Moving to a 3 bedroom from a 2 due to more children)

By Refinancing your current property and then using the FHA loan on a new live in property, the government does not see there a real reason for the move. They see this as an investment not a primary residence relocation. It doesn’t matter if you refinance the underwriters see that the move does not accommodate the exceptions.

Now I’m not sure if this would work or not but possibly waiting a seasoning period up to 1 year after refinancing and then trying to use an FHA loan again.