Hi @Nate Ramos as you probably know, for the most part, you can only have one FHA mortgage in your name at one time. There are exceptions that are few and far between (like if you were moved to another area by your work), but for the most part, it's only possible to have one at a time. If two people are on the same FHA loan, then this counts as their one FHA loan.
One strategy is to leapfrog who is on the loan/purchasing the property and on title (only having one person, not both, on the mortgage and title of a single property). How this would work is one person would buy the first property with their FHA loan, and then when you're ready to purchase the second property, the other person could purchase it with their FHA loan. Yes, this does present the challenge of both individuals needing to be able to qualify for a loan on their own, but it's a great way to do it. Then, when it's time to purchase the third property, you could refi out of the first FHA loan (if you have enough equity), and then use your FHA loan again, or use a conventional loan product.
This strategy is not without its challenges. One person must be able to qualify for a loan on their own. It works well in Oregon because we’re a personal property, not community property, state. This means that when one of us goes to get an individual loan, the bank will not look at the other person's debts/liabilities.
My wife and I are leapfrogging but doing it slightly different than explained above. Our first purchase was a duplex and we used a 5 percent down conventional loan (again, only one person on the mortgage/title). The next property will be that same conventional product (if possible) purchased by the other, and then the following properties will be purchased with an FHA loan. Using the conventional product first does a couple of things for us:
- We won't have to refi out of the FHA loan to eliminate PMI
- Once we reach 20 percent equity PMI will go away
- We still have our FHA loans available to use
Having a "non-occupant co-borrower" is a great way to qualify for financing. I work with a lot of college students who are looking to house hack and have no way of qualifying because they don't have any income. What they need is an "investor" (often times parent(s)) to help them qualify.
Game Planning for multiple house hacks can get a little tricky… which is why it’s imperative to work with professionals who know what they’re doing!
Good luck on your journey and feel free to reach out if you have any questions!
