So after attending the BiggerPockets webinar “how to buy your first property in 90 days.” Brandon turner challenged everyone to take action on getting their first property. I felt so motivated and educated after attending the webinar I took action as soon as I got off the webinar.
I just wanted to thank the bigger pockets education. From the forums, webinars and book.
I wanted to know how do I purchase my second property? My first one was with a fha loan. Can I do another fha loan on my next property? I was told that I must live in my property for at least 2 years. I’m looking to purchase another property or two this year. Just need some guidance on how do I accomplish this goal.
@Dwayne Wheeler Congrats on the purchase! FHA loans are a great way to get started. Unfortunately, the rules around them are designed to prevent exactly what you're trying to do. It's not impossible, but there are only a few circumstances in which you're permitted to get a second FHA loan:
- You’re relocating due to a new job opportunity.
- Your new home is more than 100 miles from your current FHA-financed home.
- You need a bigger home to provide for a growing family.
- You’re getting a divorce and your spouse is staying in the current home.
- You were a co-borrower for someone else's FHA loan and want to buy your own home.
- You're not using FHA loans to build an investment portfolio.
- You're buying a HUD real-estate owned (REO) property.
(List courtesy of https://www.lendingtree.com/ho...)
Otherwise, the rule states you must have been without ownership of a principal residence during the past three years. That's a long time to wait so isn't practical for most investors.
@Dave Spooner Thanks for the great insight. I wasn't aware of those restrictions regarding FHA at all. Seems like I would have to take another route. Any suggestions on getting another property without putting down 20% for a conventional mortgage?