My husband and I bought our home 18 months ago using a conventional loan before we started thinking about investing in real estate. We are now considering using an FHA loan to buy another house and doing a live-in flip. For a couple of reasons we would like to keep our current house and rent it out, so our primary residence would be the live-in flip. Can we still use an FHA loan if we already own a home as long as the FHA loan home would be our primary residence?
Yes, and if you want to, you can use an FHA loan to buy a multi unit property, live in 1 unit if it and rent out the other 1,2 or 3 units.
@Kendra Howard Yes you can keep the current house, make it a rental and get a FHA loan for your new purchase.
From what you are saying you don't look to be a qualified landlord, so you will need to have enough income to be able to service both the mortgages. FHA will likely also ask for 2-3 (can be up to 6) months of cash in reserve to cover the two mortgage payments.
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@Upen Patel theres no need to be a "qualified," landlord he can use rental income right away on his departing residence if he has a tenant even with out equity requirements on conventional financing (changed recently this year July 2015) and for FHA there is still 25% equity requirement of equity to use rental income offset.
@Kendra Howard Why are you using FHA to purchase ? you will have to have equity to use rental income while using conventional for your next purchase you will not require any equity in your current primary home and you will be able to use rental income right away (75% of gross - PITIA) ?
The only issue you're going to have is that you'll have to document why the new home will ideal as a primary residence while vacating the current primary (larger home, larger family size, more rooms, better area, etc).
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