All Forum Posts by: Gabriel L.

@Gabriel L.- you cant hold 2 FHA loans at once time .....in your scenario - you would need to refinance the FHA loan to a conventional loan in order to be able to use a new FHA loan for the 2nd home ...fyi - there are conventional loans that require as little as a 3% down payment for a primary residence purchase so consider using this program to keep the FHA option open for a future property down the road

Keep in mind, every single FHA loan you do there is a 1.75% Up front PMI charge that is a 1 time cost. If you take a 1.75% (of the loan size charged in fees, which goes directly to FHA) hit on every single deal just to refinance out of it, you are losing a good chunk of money over and over again. Make sure you take a good look at all of your lending options, FHA is not always the best path

You can refinance or sell the properties to free up your FHA loan and reuse as many times as you want.

For that exact scenario yes, you could go FHA. But, I would ask why do you want to go FHA? If its a credit score issue, you have 1 year to improve your score and get into a conventional loan. The only reason to stay with FHA is if you want to buy a 2-4 unit home, or if you had a recent BK or foreclosure and FHA is the only option. With a great credit score, conventional is superior to FHA.

Conventional requires 5% down, instead of 3.5% down.  3% down is allowed for first time buyers on Conventional (or if you have not owned a home in the past 3 years) or if you fit under the median income for the county...

@Gabriel there are some exceptions to the rule, but generally its 1 FHA loan at a time. Job relocation is a popular exception, but you need to document this. Growing family is another one. But you must have 25% equity in the departing residence. Soooo, maybe.

You can do 5% conventional loans for a primary home without any restrictions, that may be worth considering

I understand and you can only have one FHA loan at a time. There are some circumstances where you can have two if the second home is larger in terms of GLA due to an increase in family size. The opposite is also accepted when your older and retiring and need a smaller home. But to continue to use the FHA 203K back to back is going to be a very hard sell to the underwriter. They are trained to look for investors using loop holes to buy more rentals.

FHA allows you to use a second time if your buying a home closer to school, work or again fits one of the above situations. You can also use a Fannie/Freddie homestyle loan that allows for renovations.

Gabriel,

The best way to use an FHA loan is to buy the first home and at the (6 month mark) for title seasoning purposes refinance into a conventional loan. Three things can happen which are all benefits, One remove FHA MIP monthly insurance, Two convert loan to conventional and free up FHA eligibility to buy using FHA again and Three you can and might be able to take out some cash for the next purchase.

You eliminate the 12 month occupancy seasoning when you refinance into a conventional loan and it allows you to move out at month 6/7 after refinance. "NEVER"- move out prior to refinance beccause property automatiacally becomes a "Non-Owner Oc" a.k.a rental and the rates are higher and LTV options are lower for cash out.

It sounds like you already answered your own question. 2 years of employment is what the banks want. 

Hard money loans, lease-options, seller financing are options for you.