FHA and First time home ownership Newby questions

8 Replies

Hello, I'm new to BP and have a few questions. I've asked a couple of realtor but they didn't know.  So here they are:

First, my wife and I purchased a home with an FHA loan a couple of years ago, we then refinanced it into a conventional loan. Do we qualify for another FHA loan? I had one realtor tell me that as long as the new home is more than 100 miles away I should be able to but that seems weird to me.

Second, since my wife is not on our house title or on the loan will she qualify as a first time home buyer?

Thanks in advance everyone! We are getting ready to purchase our first investment property in the fall and want to see what options we have. Thanks again! 

@Harjeet thanks a lot for your reply! do you think my wife is considered a first time home buyer  though? Like I said the house is under my name only and so is the loan.

@Martin Gonzalez According to the FHA guidelines, you can acquire another FHA mortgage as soon as you pay off the other FHA mortgage. So since you refinanced into a conventional, that means the previous FHA loan was paid off so you should be fine.

@Martin Gonzalez FHA only allows one loan at a time. Since you re-fi'd into a conventional loan, you are good to go for another FHA loan.

If your wife is not on the house title or on the loan, assuming she can qualify for the FHA loan, she, too, is good to go. A lot of people use this strategy to max out how many loans they can get.

To my knowledge, FHA loans stipulate owner occupation. Many people will tell you that there is no stipulation how long you have to stay in your home. For e.g. you could get an FHA loan and move out after 6 months. I thought the same. But on an earlier post a member had clearly shown that one would have to stay for a year to ensure there are no issues.

@Omar Khan Thanks for your reply. I had heard the same thing about the FHA owner occupation rules, but we are planning on staying for a year so we should be fine there.

@Samuel Collier Thanks for replying. That's what I was thinking based on some of the blog posts I've read on BP I just wasn't sure. Thanks again.

@Martin Gonzalez As others have mentioned - the only FHA stipulations that I'm aware of are that you can only have 1 at a time (unless life circumstances change for you, such as moving for a new job or something, then you can sometimes qualify for two at once - this is potentially what you realtor was mentioning with the 100 mile thing -- this isn't what you're doing, but good to know) and that you must owner occupy for a year. It may have been developed with first time home buyers in mind - but you don't have to be a first time home buyer to use the program, it has no affect on it at all. You can get an FHA loan, refi it, and then immediately get another one as long as you qualify for the mortgage, and then refi that one too. You can repeat as many times as your lender will approve you for, and your wife can get them in her name also, together you could have up to 4 each I think (mortgages I mean, not FHA loans -- the number of conventional mortgages allowed will be based on your lender)

I would consider asking around to other realtors more familiar with the FHA program and how it can help investors grow their portfolios - not all of them are knowledgeable (clearly) on pretty simple requirements for the program and will generally say you can only do one.

You’ve asked Realtors, but we’re not lenders.  Might I suggest taking your questions to your lender or several lenders to get their responses.

@Megan Phillips , We still need to find a realtor. I had originally planned on going with the same realtor that helped us buy our primary home now but his answer about the FHA loans makes me think he's not very familiar with investment properties, so we'll need to find someone who is. Thanks for your reply.
 

@Lydia S. Thanks for replying. I will do just that. Thanks!

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