U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 08-26-2009, 02:43 PM
 
5 posts, read 17,693 times
Reputation: 12

Advertisements

Here is the situation. We bought a two family house 8 months ago with FHA loan. We acquired some cash from the sale of an apt and we would like to invest in another primary home (for us to live) & renting out the two family completely. This two family house will pay off the mortgage amount & its utilities. Our median credit score is 750.

Now we are short of 20% cash for expensive properties however we are qualified for loan amount. Can we obtain another FHA loan to buy the new property as well. We have no problem in putting down 5% or so. We are planning to have a child so the family situation changes. Are there anyone who has got another FHA loan this way?

I inquired with several banks and did some research at the FHA website. I found out that when you have an open FHA it is hard to get another FHA. Beacuse we unable to put 20% down. One bank mortgage offered 15% down with PMI conventional loan. and recently one mortgage broker gave me pre-approval based on FHA. Everyone saying that this mortgage broker will not be able to pull out. I'm not sure to pursue making offers on the houses or shall we stay back until the savings can come up to 20%? Any suggestions?
Reply With Quote Quick reply to this message

 
Old 08-26-2009, 04:07 PM
 
Location: The Hall of Justice
25,907 posts, read 35,116,354 times
Reputation: 42377
Can you get an FHA loan for an investment property? For some reason I assumed they were for residency only.
Reply With Quote Quick reply to this message
 
Old 08-26-2009, 05:34 PM
 
161 posts, read 428,795 times
Reputation: 85
Quote:
Originally Posted by JustJulia View Post
Can you get an FHA loan for an investment property? For some reason I assumed they were for residency only.
Fannie Mae underwriting guidelines allow you to finance multiple properties. As far as how many, it changes all the time. The last time I heard it was up to 10 total. You only need 5% for an FHA loan.
Reply With Quote Quick reply to this message
 
Old 08-27-2009, 08:29 AM
 
392 posts, read 1,403,789 times
Reputation: 134
1 FHA loan at a time. In addition, if you just bought the other home 8 months ago, the lender will challenge your intentions to actually move to the new home. 8 months ago, you told that lender that you were going to live in the home for the foreseable future. now you are planning on converting it to an investment property.

One solution, you may be able to refinance the current home as an investment (note, you will need equity in the home and the rate will likely go up). Then you will no longer have the FHA loan and you can use FHA to make your next purchase.

Or, just take the 15% down with PMI. PMI is not a big deal... FHA has Mortgage Insurance also (both up front MI and monthly MI).
Reply With Quote Quick reply to this message
 
Old 09-05-2009, 01:59 AM
 
Location: Houston
36 posts, read 135,502 times
Reputation: 24
Quote:
Originally Posted by JustJulia View Post
Can you get an FHA loan for an investment property? For some reason I assumed they were for residency only.

True, FHA loans are available only for primary residence and not for vacation homes and investment properties.
Reply With Quote Quick reply to this message
 
Old 09-05-2009, 02:02 AM
 
Location: Houston
36 posts, read 135,502 times
Reputation: 24
Quote:
Originally Posted by NJ987654 View Post
1 FHA loan at a time. In addition, if you just bought the other home 8 months ago, the lender will challenge your intentions to actually move to the new home. 8 months ago, you told that lender that you were going to live in the home for the foreseable future. now you are planning on converting it to an investment property.

One solution, you may be able to refinance the current home as an investment (note, you will need equity in the home and the rate will likely go up). Then you will no longer have the FHA loan and you can use FHA to make your next purchase.

Or, just take the 15% down with PMI. PMI is not a big deal... FHA has Mortgage Insurance also (both up front MI and monthly MI).

Perfect and best Answer!!!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top