Possible to get 2 FHA Loans back to back?

Question

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?

Albert Bui · Answer

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

Albert Bui · Answer

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 ....=/.

Jesse Gonzalez · Answer

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."

Wayne Brooks · Answer

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