Second FHA loan?

5 Replies

I bought my first home/rental property 2.5 years ago with an 30 year FHA mortgage. I only had to put down the 3.5% and I am currently renting out two units while I live in the other (triplex). I do have PMI ($105) for another 2.5 years but I am fine with that because the property cash flows as is.

I am getting married soon and my future wife and I are looking at living in an apartment for about a year and then getting a house but we would like to get a fixer upper and use the 203k loan. The 203k loan would be in both our names but I am wondering if I already have a FHA loan in just my name would it stop us from getting the 203k FHA loan in both our names?

Are there other non-governmental loans that are like the 203k that I can use or should I look at refinancing my current FHA loan into a traditional mortgage? I am hesitant to refinance the current mortgage as my rate is 3.25% and closing costs do not sound fun.

You won't get a second FHA loan, unless you had to move for work, more than 50 miles.metc.

@Wayne Brooks is right. Unless there are extenuating circumstances FHA will not allow a 2nd purchase-money mortgage. Their restrictions on that are pretty tight. Looked at the regs myself recently as I've been wanting to buy a new primary residence and rent out my current one.

Can you refinance your current FHA loan? Maybe get a better rate and eliminate your PMI. Then do a 203k with you and your wife to be. Im currently in the rehab stage of a 203k right now. Definitely a great tool for getting into a fully custom house for the cost of materials and labor (instead of buying an overpriced rehabbed property) .

@Wayne Brooks

 @Jim Viens

@Kyle Gregg

Thanks guys. That's what I figured I had to do. I will probably have to refinance the mortgage but I doubt I'll get a better rate than 3.25% but it will be nice not paying that PMI anymore.

I'm assuming fiancee doesn't qualify on her own?

Since you weren't married yet, she wouldn't have had to sign on as a non-purchasing spouse when you purchased the triplex.

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