Investor · Providence, RI · Member since 2016 · 77 posts · 65 votes
I used an FHA loan for my first triplex to househack and after a year would like to use an FHA loan to househack another triplex. My mortgage broker told me I would have issues with this because the underwriter would see that I moved so quickly from one multifamily property to the next and question the reasoning for moving.
Has anyone had success in using an FHA loan within ~1 year after originating the first? Any other strategies for using a second owner occupied low down payment loan for a multifamily househack?
Other than that thought, I haven't personally had experience with moving just a year after closing on the first property. But the thought of paying 40% taxes on the gain (or whatever your highest marginal tax rate is) would keep me there for another year. YMMV :)
So what about if you're still unmarried and your partner has an fha loan and you want to move the (growing) family into another 3 family fha rehab loan?
My fiance got one for the 3 family we live in now and it's been over 12 mos and we had a baby since being here. (We kept myself off the mortgage so I could more easily qualify for a commercial mortgage on my business building I had a lease to own on).
We want to spend another yr or two in another multi family before moving into a single family and using both properties as rental income.
Rental Property Investor · CT - MA · Member since 2018 · 9 posts · 1 vote
6y
@Christian Allen were there any extra requirements/ differences for the investment loan than the owner occupied conventional loan? Or was it just a bit of a higher interest rate, 25% equity, and no stipulation to live in the property for another year?
Rental Property Investor · CT - MA · Member since 2018 · 9 posts · 1 vote
6y
@Christian Allen Thank you for the reply. One more question, was your second FHA 100 miles away from the first property? So that the lender counted the rents towards your debt to income ratio as stated earlier in the thread?
Investor · Providence, RI · Member since 2016 · 77 posts · 65 votes
6y
@Michael Kingsbury My second FHA was about 3 miles away. The current rents I had for the property I was moving out of were counted towards my DTI but the new property I was purchasing was not rented so the potential rents were not counted towards my DTI.
Rental Property Investor · CT - MA · Member since 2018 · 9 posts · 1 vote
6y
Ok I don't believe my debt to income ratio will be an issue since I am not close to 30-40% but I might have an issue with financing through a regular lender. I will take your advice and look at local credit unions.
Rental Property Investor · Philadelphia · Member since 2021 · 24 posts · 14 votes
5y
hey I’m just getting started on my house-hack journey with a duplex.. I see this post is 4yrs old and I’m curious to know where you are in your journey. how many rental properties do you have now?
Investor · Meriden, CT · Member since 2020 · 35 posts · 22 votes
5y
Also looking for a concrete answer on getting into a 2nd FHA loan, AFTER refinancing out of the first one.
I am about to get into my first house hack duplex, and a mortgage broker I was speaking with advised me that I would have difficulty obtaining another FHA later (12+ months later) because they'd require me to have a justified reason for another move using an FHA (and I'm talking over 12-months after, so completely fulfilling that requirement.) I've read other posts of people not having any issue, and FHA house hacking, refinancing, and FHA house hacking right into the next year, year after year, acquiring a nice rental portfolio. I would like more insight as to whether or not this is a specific underwriter/lender overlay, or if this is common hurdles that investors need to overcome and come up with a real justified reason to needing another FHA, ie: garage for new cars, more bedrooms for marriage/kids, etc.
** Specific examples/experiences are most appreciated, but all insight is helpful. TIA!