Pittsburgh, PA · Member since 2016 · 126 posts · 18 votes
I am using an FHA loan to house hack a duplex. My plan was to live here for a year to year and a half, then buy another duplex to house hack using a conventional loan. My question is, will not having a ton of equity in the first property hold me back from getting another mortgage for my second?
Lender · Western Springs, IL · Member since 2015 · 472 posts · 245 votes
9y
@Bill E. An FHA loan will not be treated much differently than a conventional loan when you go to get another one. It will be about the rent calculation the underwriter will give you credit for. It's similar across FHA, Fannie and Freddie. Really, the way it could impact you is if the higher payment lowers your cash flow for underwriting enough. That and if you cannot come up with enough capital for a down payment on another one.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
9y
@Bill E. I'll vouch for what Jeff mentioned and will state that if your next lender (or current) is investor friendly then they will be able to count both units of your rental with executed rental agreements. In theory you should have rental income for one unit, the unit you are living in would require a new rental contract. So just time it to rent out your unit and they can count both incomes for you. Hope this helps.