Rental Property Investor · MA · Member since 2018 · 36 posts · 22 votes
Hello,
I've been doing some research but I'd figure I'd post and ask as well.
If I were to have some properties that say I BRRR'd and had under conventional loans, but were not owner occupying any of these would I still be able to qualify for an FHA loan? I wasn't sure if it would be possible if you have other conventional mortgages that you don't occupy.
Lender · Costa Mesa, CA · Member since 2018 · 337 posts · 245 votes
7y
you can get an FHA loan only on the property you occupy. whether or not you have other conventional loans on other properties is irrelevant -- although they would all be taken into consideration on your debt to income ratio.
IF you qualify for conventional loans, however, it seems silly to go with FHA -- typically FHA is for borrowers with lower credit scores or higher debt-to-income. The payments are almost always higher FHA than with conventional, so if you do in-fact have the ability to go conventional on your investment properties, i'm not sure how it would benefit you to take out an FHA loan on one you plan to occupy.
Rental Property Investor · MA · Member since 2018 · 36 posts · 22 votes
7y
@Sasha Mohammed Thanks so much Sasha! The reason why I ask this is because I have enough funds right now to do a BRRR, but haven't found any good owner occupy triplex or quads that I would like to owner occupy. I'm thinking of doing a BRRR possibly, then refinancing that - but I wanted to ensure that I would still be able to leverage an FHA afterwards.
Lender · Costa Mesa, CA · Member since 2018 · 337 posts · 245 votes
7y
you shouldn't have any problem from the sounds of things. i would double-check with a loan officer who is licensed in your state just to be safe, but from my understanding (of your question), you could either buy the property FHA so-long as you plan to occupy one of the units, OR refinance it into FHA after you buy it (again, so long as you occupy one of the units).