FHA or conventional options on 2nd property

4 Replies

Greetings BP!

I am entertaining the idea of renting out my current residence which is financed through a conventional loan. Am I able to purchase another property, ideally multifamily, through a FHA or another low percentage conventional loan? The idea is to live in one of the units in the multi-family and house hack the other units. Thank you for your time and input.

Best Regards,


Hey Jonathan,

You should very easily get an FHA loan, as long as you are house hacking. Its even better for you because the first house was NOT FHA, so you never tapped into the program yet. So you are good to go. You ideally want to house-hack with an FHA loan only because you are taking advantage of the low down payment. You can house hack still with conventional but that makes no sense because the minimum down payment is 20%.

When you already own a home do you still get the low down with an FHA loan?

Also, I just closed a conventional 90% LTV, they are out there.

@Sean Cassidy

1) Was the 90% LTV on the conventional you closed on for your primary residence? I know 10% DP on an investment property is next to impossible nowadays with conventional.

2) I think as long as you occupy one of the units of the multi-family you attained then you are eligible for the FHA loan, but now you have to figure out what to do with your previous property, rent it out or sell it.

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