Using 203k financing and the BRRR Method

2 Replies

I'm planning on purchasing a property with low money down in early 2019 and using 203k financing to acquire and rehab it. I will move-in during the rehab (making it my primary residence), but ultimately, my goal is to shortly thereafter take out the FHA loan with conventional financing. I've been doing the research necessary to understand the trials and tribulations pertaining to 203k, but I'm not asking about that part of the process. My question basically comes down to the "repeat" part of the BRRR Method. Is there any reason that would prevent me from repeating this process multiple times in the span of a few years? Basically I'm asking if FHA has some sort of policy I'm going to run up against that would prevent me from obtaining repeat 203k loans on residences that I've used as a primary residence, but maybe for only 9-12 months each time before refinancing and then applying for a new 203k loan on a new primary residence?

The only rule I'm aware of is that you can only have one FHA loan at a time. If you wait the 1 year residency requirement before refi-ing out and getting a conventional loan, I think it's okay to get repeat FHA loans.

@Mike Akerly I think ur good if ur refi is not a primary residence conventional loan. Maybe u can refi to investment property loan so that way ur not breaking any rules. Let me know what u learn because my plan is to do exactly this with my first property I just bought using FHA 203k. Good luck on finding ur first property, hope u already started getting to know market!