New to Real Estate · Dallas, TX · Member since 2021 · 2 posts · 0 votes
Hey guys! Brand new to real estate investing - but I own a Wellness Center in Dallas, Texas and have very good cash flow. I would love to not spend a year in my townhome I just purchased so I can rent it out and buy another property in 5-6 months….but would prefer only putting down that 5-10% I can qualify for with FHA….I'm aware they can call my loan due if I move out prior to a year but was wondering if there is a work around??? Thanks!
No exceptions that I know about (except the unplanned job change above) and you don't want to commit loan fraud. Bank some money and do what you have to do to improve your credit if needed to qualify for conventional loans.
@Scott Pollock it's actually within FHA acceptable guidelines to have a 2nd fha loan if your situation has changed unexpectedly as long as the new subject property is 100 miles away from your current fha primary home. Talk to your lender and have them confirm that for you.
Go to https://www.allregs.com/tpl/?r=aff7bfb2-c66e-4f69-ad8e-8c2122e3a417 to read the FHA Single Family Housing Handbook. Download the SF Handbook 4000.1 starting at the bottom of page 144.
A Borrower may be eligible to obtain another FHA-
insured Mortgage without being required to sell an existing Property covered by an FHA-insured Mortgage if
the Borrower is:
• relocating or has relocated for an employment-
related reason; and
• establishing or has established a new Principal
Residence in an area more than 100 miles from the
Borrower's current Principal Residence. If the Borrower moves back to the original area, the Borrower is not required to live in the original house and may obtain a new FHA-insured Mortgage on a new Principal Residence, provided the relocation meets the two requirements above.
A Borrower may be eligible for another house with an
FHA-insured Mortgage if the Borrower provides satisfactory evidence that:
• the Borrower has had an increase in legal
dependents and the Property now fails to meet
family needs; and
• the Loan-to-Value (LTV) ratio on the current Principal Residence is equal to or less than 75% or is paid down to that amount, based on the outstanding Mortgage balance and a current residential appraisal.
A Borrower may be eligible for another FHA-insured
Mortgage if the Borrower is vacating (with no intent to
return) the Principal Residence which will remain
occupied by an existing co-Borrower
A non-occupying co-Borrower on an existing FHA-
insured Mortgage may qualify for another FHA-insured
Mortgage on a new Property to be their own Principal
Residence. A Borrower with an existing FHA-insured Mortgage on their own Principal Residence may qualify as a non-occupying co-Borrower on other FHA-insured Mortgages.
Thanks for the great answers guys! Looks like I'll be staying here for the year! I do qualify for conventional loans but I was under the impression they typically require more than the FHA 5% down? I'm trying to jump to multifamily after this townhome purchase so looking for minimum down up front….