FHA: can I house hack multiple times over by moving?

Question

I finally am finishing school and will immediately be qualified to purchase my first home! My plan is to buy a house on an FHA loan (small multi-family) and live in one portion, while renting out the others. Then move every year to continually buy more homes using an FHA for each one. Do I need to refinance the homes I move out from an fha to another type of loan before purchasing the next one? Is this plan possible?

Kenny Bledsoe · Answer

@Cris Normandt what other loan programs are and how do I find them.

Cris Normandt · Answer

Make sure you are analyzing the properties really well before purchase and make sure that it will cash flow properly when you refinance out of it. Usually there is not a ton of equity built in on this loan product. The idea is great, but without proper data you could be cash flowing negative after the first year when you decide to refi into another loan. There are a few circumstances where you can have 2 FHA loans out at a time but they are fairly uncommon.

I like the idea of househacking to get into a home. This will get you a ton of experience down the line. Do realize there are other mortgage products out there outside of the FHA loan that could be beneficial.

Thanks,

Cris

Ian Plocky · Answer

Hey @Tommy Dedrick,

That sounds like a great plan! Although the replies so far may have you thinking that you can't get another FHA - just know that a lot of lenders also have 5-10% down Conventional loans that look a lot like FHA. (These loans DO have a PMI and typically require owner occupancy, but so does FHA)

On that note - FHA requires owner occupancy, so the answer to your question is Yes - you will need to refinance, no matter what, out of your FHA loan before moving out.

The only regret you will ever have is not starting earlier... so just get going and your options moving forward will start seem more abundant!

Hope this helps

Ashley Mitchell · Answer

you can use FHA again but have to move within 100 miles of the first property, also certain conditions apply under using it again ( new job , new baby etc)

Shannon Kosko · Answer

In PA, you only need to occupy the property for 1 year. I am teaching my 21 year old daughter about it right now.  It's such a great way to start your portfolio! Good luck!

Nathan Gesner · Answer

I think you need to occupy the property for two years before you can qualify for a second loan. Talk to a lender to confirm what the requirements would be.

FHA: can I house hack multiple times over by moving?

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