Will investments keep restrict me from FHA loan?

[Raheem Akers]

Hello BP fam,

My question is if and purchase a distressed property thru a hard money lender will that interfere with my aspirations of purchasing a duplex thru FHA means later this year? Will they consider me an investor because I would already own a property, therefore, requiring me to pay the 20% down even though I wouldn't have any mortgages in my name?

The 2nd part of that is, if the first answer is yes, then if I purchase a property in my LLC's name will that allow my to get the FHA loan in my name later this year?

[Chris Mason]

Originally posted by @Raheem Akers:

Hello BP fam,

My question is if and purchase a distressed property thru a hard money lender will that interfere with my aspirations of purchasing a duplex thru FHA means later this year? Will they consider me an investor because I would already own a property, therefore, requiring me to pay the 20% down even though I wouldn't have any mortgages in my name?

The 2nd part of that is, if the first answer is yes, then if I purchase a property in my LLC's name will that allow my to get the FHA loan in my name later this year?

FHA loans do not require FTHB status, no, and you can have investment properties and get an FHA loan.

Will that 9% or 13% HML interest rate kill your DTI if there is no rental income to offset it? Maybe.