Owasso, OK · Member since 2017 · 20 posts · 17 votes
Hi,
I'm confused on some financing options. My husband and I right now live in an apartment complex but our lease is not up until March 2018. When its ready for us to move out, we would like to house hack and buy a multifamily with an FHA loan. In the meantime though, we would like to buy some SFH with a traditional 20% down mortgage loan.
Does anyone know if you use a traditional mortgage loan for the first property, could you then get an FHA loan for the second property?
Yes, you can buy a SFH with 20% first and then use a 3.5% FHA on the second. There's no rule on how/when you can use traditional vs. FHA loans. Just know that for the most part (there are a few exceptions to the rule), you're only allowed to have 1 FHA mortgage at a time and you must owner occupy for at least 1 year. A potential issue I see is that the debt service on the SFH could affect your DTI which could potentially make it harder to qualify for the FHA loan. Luckily, FHA loans allow for higher DTI and seem to be easier to qualify for. I would just make sure that at least 75% of the monthly rent on the SFH covers the PITI and make sure you guys have plenty of reverses built up for both properties. Also, talk to a lender about your plan and start building a relationship with them. Best of luck!
@Melanie Tribble you can absolutely do what you described. Just use a bank that will count that rental income (some banks won't) and you should be ok to proceed. The same bank can write both loans for both properties. Feel free to ask more questions if you need. Thanks!