I was wondering if it would be possible to use the FHA loan on your first property, rent it out after a year, then do the same with the VA homeloan with a second house
Realtor and Investor · Scottsdale, AZ · Member since 2017 · 1k+ posts · 1k+ votes
7y
Yes. It is possible to do both as long as you meet the criteria required to obtain each loan, AND you adhere to the owner occupancy requirement for each loan.
This is what BPers like to call house hacking, and it is a very smart strategy of building a portfolio with the least amount of out of pocket investment.
Now, step back for a blown mind moment......ask your lender about the FHA 203K or 203B renovation loan that allows you to rehab a property using an FHA loan in which FHA allows you to finance the rehab expenses. ;)
Yes, this is one strategy. It doesn't matter which you use first. As long as you stay in the place for the one year period that is required. The FHA can require mortgage insurance but can be refinanced after you hit the 20% equity point. The VA loan doesn't require the mortgage insurance. I have been doing conventional with 25% down to make cash flow better. I am saving my VA loan for the right deal when I do not have the funds for the down.
FHA and VA loans can be used on SFH and 2,3 or 4 plexes. Once a place has 5 or more units then the loans become commercial.
Add to the fact there is also a Conventional option called Home Possible where you can do 3% down on a 1-unit or 5% down on a 2-4 unit.
So if you are looking at multifamily homes, if you play your cards right, you can buy up to 12 units with 5% down, 3.5% down, and 0 down, all within slightly over 2 years (since you have to live in each for a year).
And if you are working with the right loan officer and realtor, they can help you with how to use seller credits together with those low down payments to get you into these properties with very little out of pocket.