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Richard Pina
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Help with next FHA or VA loan

Richard Pina
Posted Jul 6 2022, 06:08

Good morning, I'm starting my Journey and may have ran into an issue. I purchased my first single family in 2019 with an FHA loan and i am ready to purchase my first multi family. I am currently working with the bank and was told at underwriting they cannot give me another FHA loan do to me currently having an FHA loan (i was under the impression after 1 year i am eligible to move and since i am going up from single to multi family it was fine). Now i am wondering if i was to use my VA loan to purchase the multi family property would i run into the same issue. My plan was to use the FHA or VA loan in my current market then some time after (hopefully 3-6 months) purchase a property either out of state or in my state in a cheaper market with a conventional loan or even find a property to brrr as i have a good amount of on hand cash and plenty equity in my current home if needed. Any help will be graciously received.

Thank you

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Chris Winslow
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Chris Winslow
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Replied Jul 6 2022, 06:45

@Richard Pina

Congrats on the first purchase, that's awesome!

I am not a lender so don't have the exact answers but can provide some input.

Yes that is the case that you can only have 1 FHA loan at a time. I have heard of some specific situations where you are able to have 2 but that would probably be difficult to get with most lenders.

For VA loans if you're talking 2-4 multifamily and plan on owner-occupying the building then that should be okay since it sounds like you are past you required owner occupy period for FHA and I don't believe having an FHA loan would affect the VA loan.

Good luck!

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Erik Browning
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Erik Browning
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Replied Jul 6 2022, 07:25

Hi @Richard Pina yes! You can depart your FHA residence and use your VA loan. You may not have planned it this way, but using your VA loan for a multifamily is better than using FHA for a multifamily. So yeah, go ahead and do it!

If you need a VA loan expert broker in Massachusetts, feel free to send me a DM and I'll give you a recommendation. Also, @Andrew Garcia is likely licensed there.

The reason why a multi for an FHA is cumbersome is because of the "self sufficiency test" that you must meet in order to qualify for both 3 and 4 units (duplexes do not apply).

Again, this is for FHA ONLY.

You first start out with finding the total monthly payment: Principal, Interest, Taxes, Insurance, FHA's Mortgage Insurance Premium (MIP), and HOA dues (if any)

Then find out the fair market value of all rents. Either the appraiser will do this for you OR if there are existing lease agreements, those can give you the value.

Then you must multiply the fair market value of all rents by 0.75. Why 0.75? Because you are going to live in one (required owner occupancy), but also because the FHA is accounting for vacancies.

Lastly, you divide the total monthly payment / the fair market value of all rents.

If the value you get by that calculation is < 100%, you will qualify for the loan

If the value you get by that calculation is > 100%, you DO NOT qualify for the loan

The property needs to be able to sustain itself. Again, this is for FHA 3 and 4 units. You can use this when searching for prospective properties prior to reaching out to your lender. Also you can do it yourself in a handy calculator I created. Send me a DM and I'll send it over to you >> it looks like this:

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Upen Patel
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Upen Patel
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Replied Jul 6 2022, 08:13

@Richard Pina Are you looking to move for a SFR to a Multi-unit in the same market? Or are you moving to a different part of the country (at least 100 miles from your current PR)? If you are moving away, than you can request (through the lender) FHA to get an exception for a 2nd FHA loan.

Moving from a SFR to a Multifamily is NOT moving up. In the mortgage space it is considered moving backwards. Keep in mind, the low down payment owner occupied mortgages are meant to support home ownership, not to support investors. With proper planning you can certainly buy a multifamily using these programs. But that's not the same as saying that your multifamily should be approved in the same market as your current PR.

Hope this helps.

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Richard Pina
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Richard Pina
Replied Jul 6 2022, 10:03
thank you for your quick response. I will definitely be contacting you once im off my shift. 

Quote from @Chris Winslow:

@Richard Pina

Congrats on the first purchase, that's awesome!

I am not a lender so don't have the exact answers but can provide some input.

Yes that is the case that you can only have 1 FHA loan at a time. I have heard of some specific situations where you are able to have 2 but that would probably be difficult to get with most lenders.

For VA loans if you're talking 2-4 multifamily and plan on owner-occupying the building then that should be okay since it sounds like you are past you required owner occupy period for FHA and I don't believe having an FHA loan would affect the VA loan.

Good luck!


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Richard Pina
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Richard Pina
Replied Jul 6 2022, 10:13
Thank you for reply. If i all possible i would like to contact you regarding using my VAloan and other options regarding the use of oit and other ideas that recently came to mind. 

Quote from @Erik Browning:

Hi @Richard Pina yes! You can depart your FHA residence and use your VA loan. You may not have planned it this way, but using your VA loan for a multifamily is better than using FHA for a multifamily. So yeah, go ahead and do it!

If you need a VA loan expert broker in Massachusetts, feel free to send me a DM and I'll give you a recommendation. Also, @Andrew Garcia is likely licensed there.

The reason why a multi for an FHA is cumbersome is because of the "self sufficiency test" that you must meet in order to qualify for both 3 and 4 units (duplexes do not apply).

Again, this is for FHA ONLY.

You first start out with finding the total monthly payment: Principal, Interest, Taxes, Insurance, FHA's Mortgage Insurance Premium (MIP), and HOA dues (if any)

Then find out the fair market value of all rents. Either the appraiser will do this for you OR if there are existing lease agreements, those can give you the value.

Then you must multiply the fair market value of all rents by 0.75. Why 0.75? Because you are going to live in one (required owner occupancy), but also because the FHA is accounting for vacancies.

Lastly, you divide the total monthly payment / the fair market value of all rents.

If the value you get by that calculation is < 100%, you will qualify for the loan

If the value you get by that calculation is > 100%, you DO NOT qualify for the loan

The property needs to be able to sustain itself. Again, this is for FHA 3 and 4 units. You can use this when searching for prospective properties prior to reaching out to your lender. Also you can do it yourself in a handy calculator I created. Send me a DM and I'll send it over to you >> it looks like this:


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Dave Skow
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Dave Skow
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Replied Jul 6 2022, 17:07

@Richard Pina 1) correct - you can only have one FHA loan at a time ...many investors that use FHA intially will refinance to a conventional loan before using the FHA loan a 2nd time 2) you should be able to use VA loan with the FHA in place 3) you might consider trying to refinance the fha property even if rates are higher as this might allow you to lower or eliminate the FHA MIP