FHA Loan Info

[Bart Van Leijsen]

Good evening everyone,

I am curious if I can still purchase a house with an FHA loan even though I currently own a home where I put 20% down. Me and my wife are thinking about moving in the next year or so and I am hoping that we can put 3.5% down on a house which allows us to invest more into a investment property.

I appreciate everyone's knowledge!

[Andrew Freed]

@Bart Van Leijsen - Absolutely as long as it will be your primary residence and you plan on living in it for 1 year. You cannot utilize a FHA loan for an investment property.

Additionally, if you are planning on househacking your next property, consider a 5% down conventional loan instead. It has a ton of benefits that the FHA loan does not have including lower closing costs, the ability to get out of PMI once you hit 20% equity, and no FHA self sufficiency rule which becomes problematic on 3-4 unit properties. I used a 5% down conventional on my last house hack and I definitely prefer them over FHA loans. You also can utilize a VA loan if you are a veteran which is a great househacking product.