Blog Post
Can You Use Your FHA Loan Multiple Times?
Anthony Marin • Apr 05, 2022
We will also explain how you can build a rental portfolio using your FHA loan
The quick answer is YES! You can use your FHA loan multiple times BUT you CAN NOT have two FHA loans out at the same time.
How can you use your FHA loan to build a rental portfolio?
- Buy your first property (preferably a multi-unit) with an FHA 3.5% loan. Reside in that property for 1-3 years. FHA will allow to buy a property up to 4 units.
- Within that 1-3 year period, refinance the property into a conventional mortgage.
- Once you refinance your property into a conventional mortgage, it allows you to use your FHA loan again.
- Buy your second property (preferably another multi-unit) with an FHA 3.5% loan and do the exact same thing you did with your 1st property and in 5-7 years you can have 4 or 5 properties.
PROS
- Borrow up to 96.5% of the value of the home at very low interest rates.
- You can buy up to a 4-unit property
- Credit score should be at least 580, If your credit score falls between 500 and 579, you can still get an FHA loan as long as you can put a 10% down payment.
CONS
- You must pay PMI (Private Mortgage Insurance) for the life of the loan.
- Requirements on the property and buyer are more stringent than conventional loans.
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