Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated 5 days ago on . Most recent reply

Can I qualify for an FHA Loan if I already have a conventional loan?
Hello.
I am ready to buy another property and I thought I would qualify for an FHA Loan since I have a property under a conventional loan that I am renting out to my tenants, but people are telling me I do not qualify.
Do I not qualify for an FHA loan even though I am not living in that residence? I thought I could use the rents from the tenants I am receiving and use it towards the FHA loan possibly?
I live somewhere else, and that property is not my primary residence.
Can anyone share some feedback of why I do not qualify? Any suggestions on how I can qualify for an FHA Loan?
Most Popular Reply

Quote from @Josselyn Palma:
Hello.
I am ready to buy another property and I thought I would qualify for an FHA Loan since I have a property under a conventional loan that I am renting out to my tenants, but people are telling me I do not qualify.
Do I not qualify for an FHA loan even though I am not living in that residence? I thought I could use the rents from the tenants I am receiving and use it towards the FHA loan possibly?
I live somewhere else, and that property is not my primary residence.
Can anyone share some feedback of why I do not qualify? Any suggestions on how I can qualify for an FHA Loan?
Your issue stems from FHA 100 miles + rule thats easy to work around you just gotta work with a lender who knows the rules and can guide you to a desired result.
Like my prior reply and addition above, you can only use rental income offset if you're not leaving a current primary into a new purchase with FHA (so change up the context of your scenario). You're being forced to qualify for both conventional vacated property and the new FHA property in full with no rental income offset (hence the 100+ mile FHA rule) thats why you dont qualify.
So from a lender POV how I interpret that is you dont have enough personal or other sources of income to take a double hit from both mortgages so I would then figure out what is your qualifying income, how do we use rental income offset, and what steps are needed to do so. Sometimes if you wait till the last minute or 11th hour you can no longer do any more planning so make sure you resolve these issues ahead of time.