Obtain a FHA Loan When I Recently Refinanced my Current Home?

Question

Is it possible to get a FHA loan on a new investment property, single to fourplex, (which I plan to move into for the first year) if I currently own a home that I just RECENTLY refinanced with a conventional loan in the same city WITHIN 40 miles away?

Or is it not possible since my current home is considered owner occupied?

John Warren · Answer

@Aldrin Colorado it is possible for sure. I have had multiple clients here in the Chicago market refinance out of an FHA to conventional so that they opened that loan up for use again. You will need a good lender who understands what you are trying to do. Not every lender is created equal, and I went through a handful of duds before I found an awesome lender.

Sean McCluskey · Answer

@Aldrin Colorado I believe you're correct, and it's not only a restriction against using a new FHA loan within year, but any new owner occupied loan.

Assuming you have a conforming loan right now. If your new refi was not a conforming owner occupied loan, then I think you may be in luck.

Greg H. · Answer

While mortgage underwriters have some flexibility, this one is going to be a tough sell.  FHA regs allow more than one owner occupied loan at a time with the exceptions being:

-Change in family size

-Need to move for a job

-Moving a significant distance due to an acceptable reason such as an ill relative

Cameron Tope · Answer

Aldrin,

@John Warren hit the nail on the head! Well said John!

Wayne Brooks · Answer

@Aldrin Colorado Google up “100 mile rule fha”....there are 2 of them.

Aldrin Colorado · Answer

@Sean McCluskey thank you. Unfortunately, I do have a confirming loan.

Thank you for all the responses everyone!

Aldrin Colorado · Answer

@Greg H.

Darn. Ok thank you so much Greg!

Aldrin Colorado · Answer

@John Warren Thank you!

Since I recently refinanced to a conventional loan my current home, isn't there a 1 year occupancy rule before I can use another FHA loan on an investment property?

Obtain a FHA Loan When I Recently Refinanced my Current Home?

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