Updated over 5 years ago on . Most recent reply
FHA loan after FHA loan
Newbie question!
If I buy a MF home as an owner occupant with an FHA loan, then plan to turn around and rent all units out (after a given period of time), will I be unable to secure an FHA loan for my next property? Is this why people refinance in the BRRR strategy? Thanks!
Most Popular Reply
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
- 6,401
- Votes |
- 8,037
- Posts
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
@Megan S. all good items so far on this post. This is a very common topic. One thing that is a common sticking point is that when you buy with an FHA loan you only need a minimum of 3.5% down when buying a multi-family property - that's a HUGE advantage. BUT when you refinance from an FHA loan to a conventional loan, the conventional loan will require you to have 20% equity. So if you put down 3.5% and then need 20% to refinance...it might be a big sticking point. Make sure and plan accordingly. I'm not saying don't buy a multi with FHA money...just saying to know all the information so you know how to plan. Thanks!