Does investment property effect my ability to get a FHA Loan

Does investment property effect my ability to get a FHA Loan

Atlanta, GA · Member since 2014 · 16 posts · 6 votes

Hi Bigger Pockets Community:

I am planning on buying my first rental property (this will also be my first property personal or investment) with a small group family and friends. We plan on renting all units in a multi-family house, so none of the investors will be living in the property. I am also planning on moving to a new city in the next 6 months and would like to buy a multifamily for myself to live in while renting out the other unit/s. If I buy the rental property with my partners prior to buying the property I plan on buying when I move, would it effect my ability to get a low down payment FHA loan for the property I would like to live in?

Thanks for any advice you can offer!

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  • Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    12y

    Ask your Realtor for a referral to the best mortgage person in town.  Then ask them your question.  They are the best ones to answer a question like this.

  • Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    12y

    Your part of the obligation will affect your ability to borrow. Do you have enough income to cover everything according to FHA ratios?

    You may/will have problems using income from rentals as a new landlord so consider qualifying w/o the rental income.

    Good time to talk to an FHA expert lender (not just any lender) to learn for yourself the ins and outs of this type of loan.

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