question about FHA loan

[Brandon West]

hello Investors! iv been on BP for a while now just looking and not posting. I think its past due that I get involved. I bought my first house March 2016 with a FHA loan. My question is, if I refinance will my house No longer be under FHA, if so, will I be able to purchase another property using FHA loan? thank y'all in advance

[Michael Cohen]

Brandon West - while Bram Spiero is correct that you can get another FHA loan if you refi your existing property out of FHA, there is a big caveat to that: you cannot use the rental income from the departing income as qualified income unless the new property is more than 100 miles away. You can use the rental income on a Fannie Mae HomeReady, which is a 5% down conventional loan.