Using hard money can stop me from an FHA loan later?

[Ginger Mc Gee]

hello everyone!

My and my husband are trying to get our first deal, it is a triplex. The question is: if I use hard money, can that stop me from buying another unit using an FHA loan?

thanks for any guidance! :-)

[Mike Hern]

Quote from @Ginger Mc Gee:

hello everyone!

My and my husband are trying to get our first deal, it is a triplex. The question is: if I use hard money, can that stop me from buying another unit using an FHA loan?

thanks for any guidance! :-)

No. The Triplex would be considered an investment property (hard money lenders won't lend on a property you intend to live in.)
FHA is used for "first time homebuyers" to live in the property. Talk to a mortgage broker (not a bank) in your area.

[Wayne Brooks]

@Ginger Mc Gee @Mike Hern No, it won’t affect you.  And, fha is available is available for Anyone to buy an owner occupied property, regardless of whether you own investment properties or previous owner occupied properties,it’s not just for “first time” home buyers.

[Mike Hern]

Quote from @Wayne Brooks:

@Ginger Mc Gee @Mike Hern No, it won’t affect you.  And, fha is available is available for Anyone to buy an owner occupied property, regardless of whether you own investment properties or previous owner occupied properties,it’s not just for “first time” home buyers.

 A tip of the hat to you. I stand corrected. Here are the FHA Loan Requirements.

FHA Loan Requirements

The FHA loan is the most popular government-backed home loan in the country. These low down payment loans are made by qualified lenders and guaranteed by the Federal Housing Administration (FHA).

FHA loans require just a 3.5% down payment for borrowers with a 580 credit score or higher. For homebuyers with less-than-perfect credit, FHA loans offer additional significant benefits. The government backing means average FHA interest rates are typically lower than average rates for conventional mortgages.†

Borrowers with credit scores as low as 500 can qualify for an FHA loan with a 10% down payment. Guidelines and policies will vary by lender.

This historic home loan program continues to open the door to homeownership for millions of Americans who might struggle to secure conventional financing.

FHA Loan Requirements

Important FHA Guidelines for Borrowers

The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created.

• FICO® score at least 580 = 3.5% down payment.
• FICO® score between 500 and 579 = 10% down payment.
• MIP (Mortgage Insurance Premium ) is required.
• Debt-to-Income Ratio < 43%.
• The home must be the borrower's primary residence.
• Borrower must have steady income and proof of employment.

An FHA Loan is a mortgage that's insured by the Federal Housing Administration. They allow borrowers to finance homes with down payments as low as 3.5% and are especially popular with first-time homebuyers.

FHA loans are a good option for first-time homebuyers who may not have saved enough for a large down payment. Even borrowers who have suffered from bankruptcy or foreclosures may qualify for an FHA-backed mortgage.