Using Multiple Owner-Occupied Loans

3 Replies

Hello everybody. I recently used the VA loan to buy my first property. This put me pretty much to their limit, so I know I don't have any VA entitlement left. My questions are, assuming I am keeping that loan as is (not refinancing in the near future) and after the occupancy requirements are met...

1. Would I be able to use the FHA loan for my next property? (Also if so are there any distance requirements between properties?)

2. Would I be able to a conventional 5% loan?

3. Are there any other owner-occupied loans that I should look into? 

4. What would you do in this situation?

Thank you!

Originally posted by @Michal Kolenda :

Hello everybody. I recently used the VA loan to buy my first property. This put me pretty much to their limit, so I know I don't have any VA entitlement left. My questions are, assuming I am keeping that loan as is (not refinancing in the near future) and after the occupancy requirements are met...

1. Would I be able to use the FHA loan for my next property? (Also if so are there any distance requirements between properties?)

2. Would I be able to a conventional 5% loan?

3. Are there any other owner-occupied loans that I should look into? 

4. What would you do in this situation?

Thank you!

 Conventional 5% down is going to be the best mix of features, I am guessing, if you have good credit.

- Can count departing residence rental income if needed to make DTI work.

- No weird distance rules that FHA has.

- PMI drops off once you have the equity, that doesn't happen with FHA 3.5% down. Conventional PMI rate will reward your good credit, FHA is one-size-fits-all for the mortgage insurance rate.

- Stronger offer, more likely to get the offer accepted. 

@Chris Mason Good information. Is the 5% conventional only for owner-occupied loans? 

I assume they have similar occupancy requirements of 1 year, so if that's the case am I able to use the same loan type after that period? Ideally, I would like to use that method a few times to acquire buy and holds with low down payment. 

Originally posted by @Michal Kolenda :

@Chris Mason Good information. Is the 5% conventional only for owner-occupied loans? 

I assume they have similar occupancy requirements of 1 year, so if that's the case am I able to use the same loan type after that period? Ideally, I would like to use that method a few times to acquire buy and holds with low down payment. 

Yes and yes. I have "nomad" clients that buy a new SFR in B/C areas of Oakland every 12-18 months, amassing quite the empires in the process. Typically we see them do 5% down a few times, and by the time they are on #3 or #4 the first one has appreciated enough that they can do a cash out refinance and move on to 20% down moving forward.