Can I get a second loan for new house after using FHA

6 Replies

@Savon Eckert - It depends. FHA loan is supposed to be used to help primary residence home owners afford the down payment for a home. You'd have to prove to the underwriter that your new home is

1.) More advantageous to your job due to location and proximity

2.) Bigger to fit the growing size demands of your family

3.) Much nicer, better school district, more yard, ect.

You're not allowed to keep rolling FHA loans unless you can prove you have a legit need to buy these houses as owner occupied, not as an investor

Good luck!

@Michael Ablan Thanks for the info. So if my first investment property is a multi-family 3plex and I occupy the 2 bedroom but I have 3 family members that live with me and I can prove that I can use another FHA loan for a single family home that's closer to my day job and has a nice yard and 3 bedrooms to better accommodate myself and my family ?

Yes sir. The best thing for anyone to do (in my opinion) is buy a 3-4 unit as their first home with an FHA loan. Live in it for a year and then do a FHA 203k and rehab a single family home. Then heloc out of your FHA loan, dropping the pmi, and giving yourself funds to invest from your heloc.

@Savon Eckert It sounds like you're trying to get another FHA loan just a couple months into your first, simply for your own convenience. Very doubtful you pull this off. "Closer to my day job". Unless your day job changed since you closed on your new loan, and that day job is quite a distance away, then this isn't going to work. Keep us informed. I've been wrong before.