Second FHA Loan After Buying with Conventional

[Anthony Gayden]

Good morning Bigger Pockets.

I have a question regarding my eligibility to obtain a second FHA loan. I purchased a 4 unit property in 2014 using an FHA loan I lived there for about a year before I got a new job 1000+ miles away. Once at my new location, I was pre-approved to receive a second FHA loan since I met one of the exceptions since I had to move for work.

I went house shopping and got a house under contract and I decided that I would use a conventional mortgage instead of the FHA so that I could get a lower interest rate, and not be stuck with PMI for the life of the loan. I also knew that there was much less paperwork and scrutiny required by the bank for a conventional mortgage.

Here is my question. Even though I bought a house in my new location with a conventional mortgage, would I still be eligible to purchase another home using an FHA mortgage?

Thanks for any assistance.

[Chris Mason]

Generally conventional is more REI friendly than FHA. FHA is designed with modest credit modest income middle class Americans in mind, not folks building up a real estate empire.

Now that you've purchased a primary residence in your new area using conventional, you'd have to re-qualify for the FHA exception you mentioned. Meaning that job relocation will no longer cut it, as you've since purchased a primary residence.

You would need another job relocation, etc.