I bought a triplex through FHA & I need financing for another

[Kristin Summers]

So I closed on my triplex 2 weeks ago in the Philadelphia area and I want to buy another 3/4 unit next year. From what I read online FHA expects you to live in your house for a FULL year before you buy another primary residence property. My strategy was to start acquiring 1-2 properties a year and I want to buy my 2nd multifamily May/June 2017. I just closed on my house Dec 4th 2016 so that doesn't meet the year qualification and I don't really want to take out a business loan and pay 20% down. Has anyone bought there first primary residence under FHA and then a follow-on primary residence in less than a year? Or what other loan options should I look into that require minimal down payments similar to FHA or conventional primary home loan? My job salary should support at least up to 4 mortgages and the target property value I am for is $100k for my multis.

Any and all suggestions I am more than open to look into and research.

Thanks!!

[Bryan O.]

@Kristin Summers I would think about what you are proposing: mortgage fraud. You bought a house with FHA and signed documents stating your intent to occupy for a full year, then come to the Internet and document that your plan was only 6 months. FHA allows you to buy another property, but only in special circumstances, such as forced relocation for work, family size increase, or losing the house to a noLongerSignificanOther type situation. Read up on those to see if there is a legal loophole you can use and remain on the up and up.

You could try to refinance out of the FHA loan. Instead of paying 20% down on a new property you can refinance the FHA loan to a conventional one, freeing it up to use again. You will run into problems trying to do this a handful of months after buying because it will probably not appraise, so you'll end up paying that 20% down just to get enough equity to refinance.

Basically, you got into a 1 year product, so if you want to buy again in less than 1 year, you may need to become an actual investor ;)

Best of luck.