House Hacking FHA loan

[Jordan McDonald]

Hi everyone, my wife and I are looking to buy a quad/triplex and live in one of the units to qualify for the FHA loan. Our plan was to live there for a year, move out and buy a personal residence using another FHA loan. It is my understanding that you can only have one FHA loan at a time. Is that correct? If it is correct, I'm assuming we would need to refinance our first property (the quadplex). If we do would we have to put at least 20% equity into it? Not sure if we would have enough cash to make that work. Is there a more creative way to make this happen? Thank you to all for your advice 👍🏼

[Jim D.]

Look into the conventional first time homebuyer loan called HomePossible. It's only available if you haven't owned any homes in the last three years. Conventional loan with 5% down, and up to 4 unit properties.

You could use this one, then have your spouse use it on your next purchase, and then use an FHA loan for your third property.