FHA/VA/USDA Loans

12 Replies

My fiancé and I recently purchased a Tri-Plex in my name only with an FHA loan. Our goal is to purchase our next property with my VA, then a property with an FHA in her name. A couple questions:

1. Will banks continue to lend with multiple government backed loans? (VA/FHA)

2.  Is USDA loan an option if i meet their income requirement?

Thanks for the info.

Hopefully I understand your questions correctly:

1. Is the VA loan program (guaranteed) or the FHA loan program (insured) going away any time soon? NO

1(a) - will banks continue to use those programs?  Yes, those banks who are qualified Sellers into Ginnie Mae or who have a conduit to Ginnie Mae.

2.  USDA loans are a good loan program.  The borrower and property both must qualify (much like any other program).  Is it only about income requirements?  NO - USDA loans help finance more rural areas of the US.  IF the subject property is urban, then the USDA may not be allowed to lend in that geography.  

@Chris Friberg  

I'm actually curious if banks will lend on multiply types of loans like this. I don't see anything on the websites of either program that directly prevents lending on a VA and an FHA loan, but that doesn't mean the banks don't have their own set of rules.

Paging @Albert Bui  for questioning

FHA only allows one loan outstanding at a time unless you fall under one of the exceptions:

1)larger family or out grown your home - document of birth certificate/or hospital document of a larger family and you need more space

2) you were a non occupant cosignor on another borrowers FHA loan and you're trying to get your own FHA loan now

3) Divorce or separation and you need to get an FHA loan for yourself but your current home has a FHA loan

4) Relocation of your employment or job by your company - document employer letter to state terms and agreement of your relocation, employment contract, and relocation package

For VA you can have multiple but most like not with 0% down because a Veteran can only have so much entitlement left and if you used it all for your first home you may have to put some down payment down on the second. If you're not married "yet - fiance," and you're both veteran's then I would get your hustle on and buy two primary homes while it makes sense because once you're married you cant have two primary's the underwriter on the loan will call BS.

Both FHA/VA can be used to purchase 1-4 unit residential buildings.

Originally posted by @Chris Friberg :

My fiancé and I recently purchased a Tri-Plex in my name only with an FHA loan. Our goal is to purchase our next property with my VA, then a property with an FHA in her name. A couple questions:

1. Will banks continue to lend with multiple government backed loans? (VA/FHA)

2.  Is USDA loan an option if i meet their income requirement?

Thanks for the info.

#2 - USDA is based on income and geographic areas so it depends on where you're looking to buy its usually designed to promote more ownership in areas where the government wants increased activity. Its similar to first time buyer programs in that its a special loan program or incentive to people who buy and live in areas where local officials or government want to focus on.

@Albert Bui points to the residential (only) side of the investors. However, both Fannie and Ginnie (FHA/VA) are also commercial investors for 5 units plus. Not to be confused with residential of 4 units and lower.

The residential guides for their commercial loans, do not apply.  It is a whole other set of guidelines.  

@Aaron Montague

I didn't exactly follow your question. Ginnie Mae (and Fannie Mae) are both investors who provide financing for multi-family properties. There is no commercial program for a guaranteed loan like VA. The commercial Ginnie loans are insured by Ginnie. Often they get refer to as HUD or FHA Commercial loans for MF.

A bank who lends with intent to sell back up into one of any of the larger market investors has what are referred to as "overlays", that is, guidelines that go over the top, usually in a more restrictive manner, to those guidelines set forth to sell the loan into the large market investor. For instance, if the down payment requirement is 10%, an overlay may require 15%.

Thanks for the info Dion. The root of my question is, assuming all qualifications are met, can you hold an FHA, VA, and USDA loan at the same time? I understand these programs are not meant to finance investment properties, but if certain situations arise is it plausible to utilize them all?

The main point here is how many units is the complex?

Our current property is a Tri-Plex. At this point we plan on purchasing only 3 or 4 plex properties. 

Originally posted by @Chris Friberg :

Our current property is a Tri-Plex. At this point we plan on purchasing only 3 or 4 plex properties. 

 So refer to @Albert Bui's posts.

@Dion DePaoli  1-4 units is what I was referring as there was no mention of 5+ unit multi family financing asked of. In the original post @Chris Friberg   mentioned "triplex."

The questions were:

#1 can I have more than one FHA loan outstanding (addressed)

#2 can I use USDA financing assuming I meet just the income requirements (have to meet other requirements as well)

@Chris Friberg   yes you can hold all of those loans at the same time as long as you're current, we'll run your information through a skip tracer and make sure your credit and background records all show you're current on your government insured obligations including student loans and other.

Originally posted by @Chris Friberg :

Thanks for the info Dion. The root of my question is, assuming all qualifications are met, can you hold an FHA, VA, and USDA loan at the same time? I understand these programs are not meant to finance investment properties, but if certain situations arise is it plausible to utilize them all?

Chris you will need to document primary occupancy on FHA, VA, and USDA loans and unless you have expert guidance on what constitutes "primary occupancy," it may be difficult if you buy wrong.

Underwriters have specific criteria they look at to determine primary occupancy so if you plan to buy live in one year and jump to the next it will have to be done strategically and in a make sense manner to prove "occupancy."

You'll have to qualify with credit, assets, income, but more importantly the "story," for your file will have to make sense.

Great letters of explanations, pictures, etc

I missed the tri-plex designation in the OP.  Sorry.

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