FHA Loan question for first time home buyer

[Joe Procopio]

Can you use a FHA loan after purchasing your first investment property? Or is a FHA loan only for your first time home purchase, regardless of whether or not the purchase is your investment property or primary residence?

For example, I live in NJ and would like to purchase my first rental property in South Carolina. If I choose to go with a traditional mortgage on this property, can I use a FHA loan down the road when I want to purchase my primary residence up here in NJ?

Any help would be much appreciated!

[Chris Mason]

Originally posted by @Joe Procopio:

Can you use a FHA loan after purchasing your first investment property? Or is a FHA loan only for your first time home purchase, regardless of whether or not the purchase is your investment property or primary residence?

For example, I live in NJ and would like to purchase my first rental property in South Carolina. If I choose to go with a traditional mortgage on this property, can I use a FHA loan down the road when I want to purchase my primary residence up here in NJ?

Any help would be much appreciated!

Assuming decent credit, there are 95% and 97% LTV conventional options that are generally better financing than 96.5% LTV FHA. Ensure you are working with a lender that will present various options suitable to your needs and situation, not just the one you specifically inquire about.

But, to answer your question directly, FHA loans do not have a first time homebuyer status requirement. You would not be auto-disqualified because you own a rental in SC.