All Forum Posts by: Marshall Martinez

@Caleb Smith If you have the equity to refi the FHA to conventional it would definitely help your case to get another FHA loan.

@Caleb Smith Gotcha. You may run into some problems at year 2 when you already have an FHA loan on the first property. Since FHA loans were designed for first time home buyers, it would be difficult to convince the lender to have two at one time, especially if you plan to have it as a rental.

Found this article that will help better explain.

https://www.lendingtree.com/ho...

@David M. I'm a commercial lender. Regulations and loan products are not the same.

Does FHA allow you to have two FHA loans at a time? I thought you could only have one loan at a time, requiring to refi your current FHA to conventional first.

@Robert Young To my knowledge VA loans are only for owner occupied. Not sure if a lender will do an IRRRL if it's a rental property. Additionally, the IRRRL will typically not allow cash out (increase in loan balance).

I'd speak to a lender to see if it's possible to do in your circumstance first. 

@Andre Alves Try a local commercial bank. They should allow you to put both houses up for collateral and lend a line of credit. I'd expect them to lend up to 65-75% of the total value of the two properties. They'll also underwrite it based on cash flow of the two collateral properties. 

@Jackie Anderson Working at a small local business bank I can say that customer deposits allows for a stronger relationship. In turn, they may be more willing to lend to you. The more deposits the bank has, the more they can lend. 

I think splitting the funds 50/50 would over complicate things and cause more of a head ache when it comes time to do taxes. Either one or the other would be my suggestion. Makes it easier on the underwriters too. 

@Ryan D. as @Andrew Postell mentioned, it may be hard to find a bank that allows you to pull a LOC across multiple states. There are definitely banks that will do a cross collateral loan that allows you to leverage your two properties within the state. Haven't came across one that will allow you to do it through a LOC, typically they are fully amortizing ARMs.

Welcome @Arthur Wang!