Can I get a conventional loan and FHA loan at the same time?

[Michael Emmanuel]

I just got an approval letter for a conventional loan for only 3% down. I didn't know that there was a thing for 3% down payment conventional loan.

Now that I have enough saved to buy 2 houses with 3% down, I wanna buy one with a conventional loan and one with FHA loan.

Has anyone done this before? Any idea how that works? Any advices and instructions to how make this work will be greatly appreciated.

[KC Pake]

Quote from @Michael Emmanuel:

I just got an approval letter for a conventional loan for only 3% down. I didn't know that there was a thing for 3% down payment conventional loan.

Now that I have enough saved to buy 2 houses with 3% down, I wanna buy one with a conventional loan and one with FHA loan.

Has anyone done this before? Any idea how that works? Any advices and instructions to how make this work will be greatly appreciated.

Hey there Michael,

Congrats on getting your approval letter for a 3% down conventional loan! It's true that there are conventional loan options out there with low down payment requirements, though many people aren't aware of them.

To your question about buying one house with a conventional loan and one with an FHA loan: Yes, it's possible, but there are several things you should keep in mind:

Primary Residence Requirement: Both FHA and many conventional loans have a primary residence requirement, which means you're expected to live in the home you purchase. If you're considering buying two homes at once, you'll need to decide which one will be your primary residence. The other property could potentially be considered an investment property.

FHA Loan Limits: FHA loans have specific loan limits based on the county and state where the property is located. You'll want to check these limits to ensure the home you're considering falls within them.

Mortgage Insurance: FHA loans come with both an upfront mortgage insurance premium (UFMIP) and an annual premium. On the other hand, with a low down payment conventional loan, you might have private mortgage insurance (PMI) until you reach a certain amount of equity in your home. These costs can add up, so be sure to factor them into your calculations.

Debt-to-Income (DTI) Ratio: Lenders will consider your DTI ratio when determining your loan eligibility. Buying two homes at once could significantly impact this ratio. Make sure you can comfortably afford both mortgage payments, insurance, taxes, and maintenance on both properties.

Future Flexibility: If you have an FHA loan on one property, and later want to buy another property with an FHA loan (perhaps you move or need a bigger home), you'd typically need to refinance the first property into a conventional loan or sell it. The FHA typically only allows you to have one loan at a time.

All the best with your investments,
KC