Unlimited FHA Financing

[Marvin Anaya]

Hello BPers!

If I change jobs every 12-18 months, acquiring a new job in a different state, can I keep taking out an FHA loan every 1- 1.5 years ?

HUD:

We do not object to homebuyers using FHA mortgage insurance more than once if compatible with the homebuyer's needs and resources as follows:

A. Relocations. If the borrower is relocating and re-establishing residency in another area not within reasonable commuting distance from the current principal residence, the borrower may obtain another mortgage using FHA insured financing and is not required to sell the existing property covered by an FHA insured mortgage. The relocation need not be employer mandated to qualify for this exception. Further, if the borrower returns to an area where he or she owns a property with an FHA insured mortgage, it is not required that the borrower re-establish primary residency in that property in order to be eligible for another FHA insured mortgage. 

[Lynn McGeein]

We actually obtained a 2nd FHA loan when we moved for work, and it was extremely difficult, lots of hoops to jump through, including showing that our other investment properties were mortgaged with investment loans. We even needed to write a letter stating that we weren't using FHA to build our rental portfolio and had no intention of renting this home out, and we were told it would be highly unlikely that we would get another FHA unless/until we sold or refi'd to conventional on the former FHA loan. So maybe you could do it, but I don't think it will go smoothly. Also, the balance of the first loan had to be less than 80% of purchase price or they wouldn't count the rental income for that property but the mortgage was part of our DTI.