I presently own my primary home with a conventional mortgage (we put 20% down 2 years ago) and I am now looking at starting to get into real estate investment in San Antonio. My plan is I would like to buy a 4-plex in San Antonio and be an owner occupier of one unit. My thinking is that I would live in one unit while making renovations to the unit and fixing the place up myself for 6-12 months. I plan to stay there 4-5 nights a week while my wife lives in our current house.
Google simply points me to a lot of articles of buy a second house using an FHA loan but I can't seem to get a clear answer on if I have a conventional mortgage can I buy a second home with an FHA loan.
I would be interested in others thoughts/tips and experiences.
Not sure on the conventional part of the question but there would be no 6-12 month range, you must occupy for a full 12 months to satisfy the FHA owner occupied requirement or risk defaulting on the loan due to mortgage fraud if the lender catches wind of it. This sounds like it would get dicey with the two of you married and already occupying another primary residence for tax purposes but I'm sure someone else will be along to clarify that.
Thanks for the reply, my wife wants to stay at our present house and I don't mind being away from home large amounts of time as my past job had me away a lot more. So if I had to stay there 12 months that would be fine and probably an advantage to give me the opportunity to look for more opportunities.
Thanks for the reply.
Scott, you would need to buy the 4plex as an owner occupied property, and reside in one of the units, under FHA rules
That is my plan, my question is can I qualify for an FHA loan with an existing conventional mortgage to my name?
As long as your debt ratios make sense, it should not be an issue. A letter of explanation would be needed in that you will occupy the property as your primary residence. You could use the lease agreements in place, if any on the other units to help offset your mortgage payment to help you qualify. If none of the units are rented, you would need to qualify with both mortgages or.... you could rent out your primary residence with a lease agreement to help you qualify, but it seems that is not an option
Yes, you can qualify for FHA loan even though you currently have a conventional loan.
We did it a few years ago due to Job relocation from one city to another city 500 miles away.
We have a conventional loan in the original city.
Due to job relocation, we moved to another city 500 miles away using FHA loan to purchase our primary residence.
Awesome! Thank you so much for the replies. I just wanted to make sure it was possible.
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