Can I use an FHA twice???

Question

I want to purchase property in SC where I was born (willing to move there for a year), but I also want to be able to purchase here in Boston where I live. My problem is this, there are no multifamily homes in SC not really many duplex at most IF I buy a single family and pay it off or a condo, can I use another FHA to purchase here in Boston ? and can I purchase a 4 family after using an FHA for a single family? I was told I cant increase the number of units that I can only decrease them. What is the most realistic way to be able to purchase a property in SC and then be able to purchase a triplex or a 4 unit here in Boston after using FHA?

Kimberly Elson · Answer

You can actually have more than one FHA loan. If you have one and you have to relocate more than 100 miles for a job opportunity you could qualify for another FHA without having to pay off the first.

However, FHA is not always the best or cheapest option, so you should discuss with your loan officer or mortgage broker to find the best fit for what you’re trying to do. There is no rule regarding decreasing units, in theory you could go from a SFH to a quadplex. But, with the current market I think it would be very difficult to make a quad work with the FHA self sufficiency test.

Kyle Spearin · Answer

@Aarielle Pannesi, from my understanding you can only have 1 FHA loan at a time. Perhaps you could buy one with an FHA and another with a 5% conventional. If you plan on living in Boston and having the SC property for other use, you may be able to ask lenders about vacation property/second home loans which would be less than 20%. Good luck!

Brayden Hrycko · Answer

Hey @Aarielle Pannesi,

Yes, you can use the FHA for both of those purchases. However, to use the fha relocation rule to have the second fha loan from my understanding, is that it has to be a relocation for work reasons.

I would also recommend buying the 4 unit first then later going for the single family because underwriters also want to see that you are moving or upgrading your living standards. If you live in a single family then move to a 4 unit and you're downgrading your quality of living in square footage, ect. That may be a red flag to an underwriter. I also like this idea because you can always go with the 5% down conventional option on the second purchase is the single family and you don't have enough equity built into the first one to refi it into conventional so you can go fha. There is no right way to do it, just some things to consider.

Daniel McDonald · Answer

I used an FHA twice in less than 3 years with two duplexes that are about 2 streets over from each other. Didn't really run into any problems because I refied into a conventional loan on the first one when I was still living there. Not that this matters for your case (unless you want to use it a few times) some lenders wouldn't do it for me because the house was within 100 miles of the first, but they're other lenders that can work around that. Good luck!

Aarielle Pannesi · Answer

Kimberly a loan officer put the unit rule in my head if there is no rule about the units then I really actually don't have a problem here. Thank you all very much for the valuable information you have all provided

Aarielle Pannesi · Answer

I am just trying to "save" the 3.5% down for the more expensive deal that ultimately nets me more doors. It just doesnt make financial sense to me to put 3.5 down on the less expensive single unit purchase. I think what I was trying to ask is not if they can run simultaneously but if I can get another fha loan after paying off my first one if I can own a property free and clear and still use an FHA for another owner occupied purchase or if you can only have one in the span of your life.

Scott Johnson · Answer

@Kyle Spearin & @Deandre P. you answered the question I had by reading the title. Thanks so much!

Deandre P. · Answer

I’m assuming there is a particular reason to why you want to purchase in SC then Boston? You can only have 1 FHA loan at a time so for your scenario you would have to purchase in SC, live there then either pay it off or refinance. What makes the most sense though is to purchase a multi unit in Boston first, then purchase a home in SC using conventional (5%) rather than FHA.

Bill B. · Answer

If you have enough money to pay off mortgages why are you using FHA mortgages instead of conventional ones? Seller’s will be less interested and you’ll end up paying more. Especially if you’re buying them as primary homes.

Can I use an FHA twice???

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