Multiple FHA Loans Advice

[Jeremy Mattson]

Hi All, 

I met with my local Credit union this week to discuss the possibility of getting another FHA loan. They informed me that If I moved out of my current duplex, I would need to refinance my FHA loan into a commercial loan. Is this true?? From my understanding and listening to the podcasts, you are able to have at least 5 FHA loans under your name.. as long as you stay in them (or intend to stay in them) for at least a year. Has anyone else had this issue?

Their commercial loan options are also awful... 3 or 5 year balloon, amortized over 30. 

Im hoping to cash-out refinance my renovated duplex for the down-payment on my next deal.

Thanks in advance!

[Chris Mason]

Originally posted by @Jeremy Mattson:

Hi All, 

I met with my local Credit union this week to discuss the possibility of getting another FHA loan. They informed me that If I moved out of my current duplex, I would need to refinance my FHA loan into a commercial loan. Is this true??

No, tell them to f off. Your FHA owner occupancy promise is only for 12 months. If you've fulfilled that promise, no need to refinance. And if you did refinance, no need to go commercial (Assuming a vanilla 1-4 unit residential property). Commercial loans are higher profit, as you may have figured out.

If your question is about trying to get another FHA loan while you still have that original FHA loan, well then that's a different question. :) It's hard to have multiple FHA loans at once, few people qualify for the exception.