Can you get another FHA loan after conventional refinance?

Question

Scenario

I purchased 2 duplexes last year, one as my primary, using FHA, and the other with a conventional investment loan. I'm planning to refinance both properties. The FHA property will be a rate & term only refi into a conventional investment loan. The other property will be cash out refi as primary residence conventional loan. **I will no longer have a FHA loan**.

Question

If I then wait a year (or however long is actually necessary) to convert my now primary property into an investment and then purchase another property as my primary residence, will I be able to once again use a FHA loan to get a 2-4 unit primary property?

Thank you in advance.

Torrell Palmason · Answer

So to convert the FHA into a non-owner occupied Conventional you will need to have 25% equity in the home after that you will be good to use FHA for a owner occupied again.Best of Luck!

Phillip Rosin · Answer

@Brenden Mitchum thanks for the kind words. It was my first endeavor and has been quite the rollercoaster. DTI won't be an issue at all. I just wasn't sure if there were any rules regarding using FHA loans multiple times, so long as you don't currently have one.

Brenden Mitchum · Answer

Hey @Phillip Rosin! First, congrats on the two duplex acquisitions last year! Great to see fellow investors making big moves during COVID.

So, I am definitely not a mortgage professional but I can tell you that you should have no problem getting the FHA loan in this scenario as long as your DTI is low enough. It isn't the fact that you have conventional loans or even how recently you got one that's important but rather the debt associated with these loans.

However, this is absolutely a question for your lender. If you're not comfortable having these kinds of conversations with them, you definitely want to seek out other options.

Hope this helps a bit. Please, feel free to reach out anytime if you have other questions or just want to chat!