Using FHA to buy multi family

[Jo Ballagh]

Hi All! I am in the process of refinancing my current home from an FHA loan to a conventional loan. I will be closing this week! My property appraised well and I now have over 20% equity (no PMI! Woohoo!!) Now! My next step to purchase an owner occupied multi family residence (4 plex) using FHA. I don't have 20-25% to put down so I need FHA. I plan to rent out my current home and move into the 4 plex. I'm hoping to get some help in this area: * is there a waiting period from the time I refinance to the time I can purchase? * do I need to move out of my home and rent it for a period of time before I can purchase with FHA? * what are other regulations involved with FHA to purchase a second home that is a multi unit? Thanks so much in advance for your expertise! Jo

[Bill Gulley]

Welcome to BP, Jo! 

My question is, you're refinancing you home, are you doing that loan as an owner occupied, because if you are, you won't be moving anywhere for a year. 

As to FHA, 97% is owner occupied, not second homes and in reality, buying a 4-plex is tough because of the appraisal requirements for FHA, like properties sold within 6 months, finding 3 sales of multi unit single family dwellings, of more accurately, single family attached dwellings will be hard to do. BTW, "multi-family" is 5 or more units.

Just call me the dream popper I guess. Sorry, :)