good morning does anyone know how long you have to wait to buy a second property after your first FHA owner occupied home
From what I understand, you can only have 1 FHA loan out at a time. Assuming you've lived in the property for over a year, you can refinance or sell the property and get a new FHA loan.
Jason is correct. One FHA at a time. If you have the funds you don't have to wait any time if you are looking to buy another investment property using a conventional mortgage. Keep in mind that you may run into debt to income ratio limitations. Most lenders will not use rental income in your ratio until you have two years documented on your taxes. This is generally an individual bank overlay as the fannie requirements allow banks to use 75% of rental income immediately so long as you an provide a lease. Freddie mac rules are different and you must show the two years, but fannie is different. Even though this is the case every bank I have tried also requires the two years experience documented on taxes.
@Charlene M murrill You can only have 1 FHA loan at any given time. So if you currently have a property with FHA financing and have fulfilled the 1 yr occupancy requirement, then you can refi that property away from FHA to a conventional, and then go buy a new property with FHA loan. You would have to owner occupy the new property per FHA requirements.
If you want to buy a new investment property using conventional loan, then you can do it at any time, as long as your income supports it. Not all banks will let you use the rental income towards DTI, but investor friendly banks will.
Hope this clarifies your options.
Upen Patel, Mortgage Banker
Federal NMLS# 1374243
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