Residential Real Estate Broker · Salem, MA · Member since 2015 · 66 posts · 35 votes
Hello guys
I have a question for all of you seasoned grizzled veterans. On many of the podcasts I've heard that you can have multiple FHA loans open at the same time. However, every lender I speak with says that's not possible. Which is it? Can one person have multiple FHA loans open at the same time? If yes what are some of the requirements or conditions surrounding it? Who do you know in MA that would be able to help me structure some of these loans and/or have a cup of coffee with me so I could pick their brain a little.
Thanks in advance,
Cynthia
Real Estate Agent · Fort Collins, CO · Member since 2010 · 350 posts · 222 votes
9y
There are some unusual exceptions to the one FHA loan at a time. For example, I believe you can get another FHA loan if you move more than 100 miles or if you inherit a property with an FHA loan, but these are rare exceptions and probably not practical for implementing a house hack or the Nomad model.
FHA is good if you're doing duplexes, triplexes or fourplexes, but if it is a your first property and it is a single family home, there are 1% down conventional loans that you can use to owner occupy, live there for a year then convert to a rental. For subsequent owner occupant purchases, we typically model it with 5% for each of those.
Contractor · College Station, TX · Member since 2015 · 113 posts · 38 votes
9y
Hi,
I just got through the chapter in Brandon's book about FHA loans, and you can only take one out at a time, on a property 4 units or less. Hope that helps.
Real Estate Agent · Hamilton, NJ · Member since 2013 · 464 posts · 311 votes
9y
The lenders are right, you can only have one FHA loan "open" at a time. FHA loans are for owner occupants not investors. The angle investors use is that they use the FHA loan to buy a property with low money down to house hack and then eventually turn the property into an full fledged investment property. One of the requirements of the FHA loan is that you have to occupy and live in the unit for at least a year. I think when you say that investors have multiple FHA loans its because they refinanced out of a FHA loan and then get another one. As long as you continuously qualify, I don't believe there's a limit to how many FHA loans you can have. You just can never have more then one at the same time.
Real Estate Agent · Fort Collins, CO · Member since 2010 · 350 posts · 222 votes
9y
There are some unusual exceptions to the one FHA loan at a time. For example, I believe you can get another FHA loan if you move more than 100 miles or if you inherit a property with an FHA loan, but these are rare exceptions and probably not practical for implementing a house hack or the Nomad model.
FHA is good if you're doing duplexes, triplexes or fourplexes, but if it is a your first property and it is a single family home, there are 1% down conventional loans that you can use to owner occupy, live there for a year then convert to a rental. For subsequent owner occupant purchases, we typically model it with 5% for each of those.
Real Estate Agent · Willoughby, OH · Member since 2014 · 560 posts · 690 votes
9y
James is correct about unusual exceptions. If you have children and you are needing to moving into a larger home, that is one. Also if you are forced to move far away due to your job, that is another. There are a couple of other exceptions, they are slipping my mind at the moment but im sure someone else will chime in.