FHA loan on second property

5 Replies

There is plenty of useful information on FHA financing here, but I couldn't find answer to the following question:

Is my first rental property (non-FHA) going to affect my ability to qualify for an FHA loan for my second property?

No solely on that basis. However the two main hurdles are convincing the underwriter you will occupy this new property, as well as using rental income from the property you vacate. If the properties are within 100 miles, you would have to qualify with both mortgage payments.

Nope. I just got an FHA loan to purchase the home I live in. I also have 2 VA loans, one on a 4 plex and one on an SFR (yes I lived in both of those properties before moving to this one) as well as a conventional loan on another investment property.

Originally posted by @Brandi Carballo :

Nope. I just got an FHA loan to purchase the home I live in. I also have 2 VA loans, one on a 4 plex and one on an SFR (yes I lived in both of those properties before moving to this one) as well as a conventional loan on another investment property.

 Guys thank you for the replies.

@Brandi Carballo did you have to prove to them the 2 years worth of rental income you're receiving from your other properties to qualify for the FHA?

@Mikhail Ryumishin  Yes, I had to provide 2 years of tax returns showing rental income. I was also using the rental income to qualify for the loan (we wouldn't have qualified based solely on my husband's salary), so I had to have the tax returns to show that income. I also had to provide 6 months of bank statements and for the rent deposits they asked for copies of the deposit slips and canceled checks. I think this was the particular underwriter of the mortgage broker I used, but it was easy to provide (I was able to get PDFs of everything they asked for right off my bank's website). They also asked for copies of all of our leases or rental agreements.

Yes, if you're going to use it as primary and if your current home does not have an FHA loan. You can only have one FHA loan. There are some soon-to-Be New FHA Guidelines, so if you're thinking about getting an FHA loan, you might want to do it now before the guidelines change.