Can you use an FHA loan on your second property?

House Hacking
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Can you use an FHA loan on your second property?

Robbie Walton
Member since 2023 · 1 post · 1 vote

Hello everyone, I'm looking to purchase my first property soon and am planning to use a conventional loan because I do not plan to live in this one. However I plan to house hack in future properties I purchase, and would like to use an FHA loan for that. So my question is, is it possible to use an FHA loan on a property that is not your first? And if it is possible, can I use it more than once if I refinance it using some other type of loan later down the road?

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Carlos Valencia
Lender · 92703 · Member since 2022 · 326 posts · 538 votes
3y

Hello Robbie, 

Yes you can use FHA as long its your primary address and after 12 months you can refi out and have it available for use again. This is a common strategy many investors use to continue to buy their next property with low down payment.

@Albert Bui @Matthew Kwan

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  • Jon Puente
    Lender · Charlotte, NC · Member since 2020 · 224 posts · 221 votes
    3y

    Hey Robbie,

    Great Question - Yes you may use an FHA loan even if its not your first property, as long as its your primary residence. FHA requires the property to be owner-occupied. Yes, you can always refinance out of an FHA loan and re-use an FHA loan on a new primary residence down the road!

    2Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Robbie Walton:

    Hello everyone, I'm looking to purchase my first property soon and am planning to use a conventional loan because I do not plan to live in this one. However I plan to house hack in future properties I purchase, and would like to use an FHA loan for that. So my question is, is it possible to use an FHA loan on a property that is not your first? And if it is possible, can I use it more than once if I refinance it using some other type of loan later down the road?


     Hey Robbie, 

    You do not have to be a first time buyer to use FHA. You can only have one at a time and it must be for your primary residence. So yes, you can refinance out of an FHA and use it again for another primary.

    [email protected]818-269-7983
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    2Reply
  • Carlos Valencia
    Lender · 92703 · Member since 2022 · 326 posts · 538 votes
    3y

    Hello Robbie, 

    Yes you can use FHA as long its your primary address and after 12 months you can refi out and have it available for use again. This is a common strategy many investors use to continue to buy their next property with low down payment.

    @Albert Bui @Matthew Kwan

    5Reply
  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    People here have already answered but for what it's worth, I did a conventional loan for my first house hack and a FHA 203(k) loan on the second one.

    The caveat is you can only have one active FHA loan per customer. Using my experience as an example, I have since refinanced out of it and now could get a new FHA loan if we wanted to.

    0Reply
  • Steve Daniels
    Member since 2023 · 14 posts · 3 votes
    3y

    I purchase with my business LOC, 3.5% interest, interest only pmts, 10 year term, no $ limits. I love it.

    Steve

    I have found that being in a financial state of readiness is the best plan to start with anything. Reach out please.

    0Reply
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