Possible to get 2 FHA Loans back to back?

4 Replies

I have a property with a FHA loan that I purchased last year, If I refinance that into a conventional loan, would I be able to get another FHA loan to purchase another building afterwards?

Are there any considerations?

I think you have a 2 year wait, without a 50 mile or so move.

From the fha guidelines, "The table below describes the exception situations in which FHA does not

object to borrowers obtaining multiple FHA-insured mortgages.

Note: To determine the eligibility of a borrower for one of the exceptions in

the table below, the underwriter must consider the

· length of time the previous property was owned by the borrower, and

· circumstances that compel the borrower to purchase another residence with

an FHA-insured mortgage.

Important: In all cases other than those listed below, the borrower is not

eligible to acquire another FHA-insured mortgage until he/she has either

· paid off the FHA-insured mortgage on the previous residence, or

· terminated ownership of that residence."

Originally posted by @Ali Far :
I have a property with a FHA loan that I purchased last year, If I refinance that into a conventional loan, would I be able to get another FHA loan to purchase another building afterwards?
Are there any considerations?

I've done these before and with each bank its different it all depends on interpretation of the guidelines. A lot of lenders will show you the guidelines but that may not represent how their bank or head underwriter/credit officer will make the final call on their interpretation.

At my bank if you were to refinance into conventional from FHA you would have to wait a min of 6 months to apply for an "additional primary residence," assuming the occupancy story and motivation letter is strong and sqft, home size, and other factors warrant a "primary residence."

If you have a lot of similiar sized rental homes in the area and the home you're trying to purchase a home as a primary residence, it may be difficult but not impossible since you'll really have to convince the underwriter beyond a reasonable doubt.

In residential lending its like you're guilty until proven innocent, I know ....=/.

Medium new american funding logo  Albert Bui, New American Funding | [email protected] | 949‑514‑5106 | http://albertbui.com | CA Lender # 345453, WA Lender # 345453, TX Lender # 345453, TN Lender # 345453

Most loan officers who would read your topic heading would assume 2 FHA loans concurrently despite in your discussion you mentioned you paid off the first FHA loan with conventional financing prior to reapplying for a FHA loan which I addressed in my last response.

However, its also possible to obtain 2 FHA loans concurrently as well if you qualify for one of the 4 exceptions to do so:

- larger unexpected family addition need larger home

- extenuating circumstance like death, divorce, etc

- you were a contingent borrower on another home owners loan (co-signor)

- relocation to another locality

Medium new american funding logo  Albert Bui, New American Funding | [email protected] | 949‑514‑5106 | http://albertbui.com | CA Lender # 345453, WA Lender # 345453, TX Lender # 345453, TN Lender # 345453