Needing loan advice for Owner Occupy

[Mia Kirsch]

Hi everyone. My husband and I are very new to the real estate world. We purchased our first duplex last year and we are currently house-hacking it. We used an FHA loan for the low down payment option. We want to start looking for another duplex but need advice on what to do. Are we able to use an FHA loan again for our second property? Do we need to refinance the first duplex into a conventional loan before purchasing our second property? We want to live in the next property and fully rent our first duplex. Thanks for any advice or suggestions!

[AJ Wong]

Hi Mia and congratulations. Generally only one FHA loan at a time but you usually can utilize a new FHA loan for a new primary after twelve months of occupancy in the current residence. There are some other extenuating circumstances that allow one to use more than one FHA loan at a time:

- Relocating to an area beyond reasonable commuting distance to your current residence or affordable housing is not available 

- Leaving a jointly owned property to buy a home, and co-owner (such as divorce) plans to remain in the home.

-Cosigned an FHA loan for someone else and now want to purchase your own home.

- Buying a larger home for growing family with evidence of increase in dependents and 25% equity in current home

Check in with @Joseph Chiofalo, he's a great friend and top lender nationwide for 20+ years. Good luck!