Can I get 2 primary mortgages at once/FHA & 5% down conventional

[Lillie MAnon]

I am interested in buying two properties at once. I live far north and the winters are brutal and so I would like to be able to purchase a second home down south with a conventional 5% down and a duplex using FHA in the town I live in. I would want to be able rent out the second home sometimes to short term vacationers but my genuine intentions is to use it as much as possible in winter and summer. And obviously I would rent the other side of the duplex.

Do you think I could get away with closing both loans around the same time and qualifying for a primary residence mortgage on both? If so, is it better to close on an FHA or a conventional loan first? Income-wise I could qualify for both properties without rental income being taken into consideration.

I'm relatively young, single no children. I don't feel the need to buy a big house right now but I want to get started on owning and investing. I also don't have a crap load of cash sitting around but I would have enough downpayment and closing costs for an FHA and a 5% down conventional.

I would think that if I got married we could either use my future husbands info to buy a primary house or by that time, we could convert these to rentals and qualify for an FHA or low money down conventional.

[Chris Mason]

@Lillie MAnon,

You expressed a desire to live in the down south place a portion of the year without me or anyone else prompting/nudging/hinting, so I'll share this option because I believe you can mostly accomplish your goals without fraud and I don't believe you want to commit fraud.

Buy the first one FHA 3.5% down primary residence. Buy this one first.

Buy the second home, a single family residence only, 10% down, as a "second home." Buy this one after the first one above.

From FNMA, "Second Home Requirements"...

• must be occupied by the borrower for some portion of the year
• is restricted to one-unit dwellings
• must be suitable for year-round occupancy
• the borrower must have exclusive control over the property
• must not be rental property or a timeshare arrangement 1
• cannot be subject to any agreements that give a management firm control over the occupancy of the property

See that little footnote there, the "1"? That means you don't have to lie or omit the short term rentals, provided you're working with a FNMA direct lender with no overlays. But you will be managing any short term type rentals yourself for the first year, no long term leases, no prop management company. 

You've got to be able to support both mortgages with your personal day job income, 2nd home rental income can not be used. 

When attempting to apply/qualify for future mortgages, the underwriter will (in your scenario) likely ask for documented evidence that your second home purchase was not mortgage fraud. So follow the rules, do right by the promises you make.