Had an FHA loan, then sold...would I qualify for FHA again? (insurance, credit score)

[adr3naline]

Hey Guys,

This will probably be an easy question.

I had an FHA loan on my old condo, which I sold after 4yrs to move across the country. Now I'm hoping to purchase a new condo. Housing costs in Los Angeles are astronomical so my otherwise healthy down-payment is sh*t. Naturally, FHA's 3.5% terms come to mind.

So my question is; I already had an FHA loan (now gone), can I qualify for another FHA loan?

I believe the answer is Yes although FHA documentation is unclear and seems to revolve around the idea of having multiple FHA loans at once, which is not the situation I am in. I also had less than 25% equity built into my first FHA loan, which I understand could play a part...

Thanks ahead of time!

[froglipz]

Yes you can, as long as you paid off FHA loan in full.

[adr3naline]

Originally Posted by froglipz

Yes you can, as long as you paid off FHA loan in full.

Thanks for the quick response. The sale price of my FHA-funded condo paid off the FHA loan and then some. So I guess I am in the clear.

[FalconheadWest]

Yes, you can use the FHA mortgage how ever many times you want as long as there is one at a time (though there are circumstances they will allow more than one).

If you're looking for a smaller down payment, look into the 3% conventional. You need a fairly decent credit score to qualify, but saves you in mortgage insurance in the long run.

[adr3naline]

Originally Posted by FalconheadWest

If you're looking for a smaller down payment, look into the 3% conventional. You need a fairly decent credit score to qualify, but saves you in mortgage insurance in the long run.

I have an excellent credit score (780+), so thanks for this tip!

[thelopez2]

Just to clarify for future planning, it is possible to have two FHA loans.