How to House Hack my 2nd deal!

Question

So me and my family( spouse+2 kids) are 7 months into our first house hack and we want to do our second deal next year March 2020! We bought a duplex and currently live in one unit and rent the other. We don’t have a positive cash flow right now but it does help with the mtg payment. Once we move to our next deal we should be cash flowing positive 500, hopefully.

We utilized a fha loan this time and we want to see what other options we have or what we can do to avoid a night down payment and interest rate. Some questions I have are, when we move to our next home will the fha loan terms still be the same or will we be bumped to and investment ? What are some ways that we can get creative with financing, should we refinance and take the equity to fund the next deal ?

Jonathan Escobar · Answer

You cannot have 2 FHA loans in your name at a time. What you might be able to do is if the loan is in your name and you have a relative that wants to go in on it with you then you can put the loan under their name and have 2 FHA loans that way but Jerri Doby cannot have 2 FHA loans in your name at the same time. There are a couple exceptions but you have to ask your lender about that. One is that they have to be like 100 miles away from the first FHA loan property or something like that. But in most cases, you wouldn't be doing that unless you were to move states and manage the first property by long-distance which most beginners don't do.

So if you have a wife or a son who wants to qualify for the 2nd FHA loan then you could do that but remember that they have to have the credit and income to qualify for the FHA backed loan. I think it is 640 credit score minimum and the income depends on the price of the property. Hope this helps :)

Sam L. · Answer

I'm pretty sure you'll have to refinance out of the FHA loan. I don't think they allow an individual to have 2 FHA loans at once.