Second home loan

  • Question : Can an individual have more than one FHA loan? - Victoria Answer : There are a few cases where an individual can have more than one FHA loan. If you meet at least one of the following three situations, it is possible to have more than one FHA loan: You are relocating for a new job and your new job is not within normal commuting distance of your current home. You can document that you and your family have outgrown your existing home, and another one is needed. You co-signed for another person for an FHA loan, but you do not occupy the house with this person. Of course, you can always request an FHA refinance for your FHA loan or any type of loan.
  • Question : Can you get a FHA loan for a second home or investment property? Answer : No. You must live in the home financed by the FHA loan.
  • Question : Do you have to be a first-time homebuyer to obtain a FHA loan? I have purchased and sold a home prior to now, but did not use FHA financing. Am I allowed to use it on my second home? Answer : No, you do not have to be a first-time buyer to obtain a FHA Loan. Though part of the original design and intent of the FHA program was for first time home buyers, the program is open to anyone wanting to purchase a home.
  • Question : How do you get approved for a home if you still owe on another home that you need to see? -Kate Answer : You need to explore the option of a combination loan if you are looking at paying for another mortgage. This loan can help you primarily when you are looking at making the down payment on your second home. There are two different types of combination loans. The 80/10/10 is a loan in which you get a house for 80% of the purchase price, you put down 10% of your own funds, and borrow the remaining 10% of the funds for a second mortgage. The second combination loan is referred to as the piggy back loan, in which some buyers use to avoid a private mortgage insurance or a PMI. This is due to the fact that PMIs are not income tax deductible.
  • Question : I am currently planning on buying a 4 plex to owner occupy. Do I need to have my current home sold in order for the underwriter to believe my intent to owner occupy my FHA financed 4plex? -Patrick Answer : It is a requirement to live in a least one of the units of the 4 plex, but you don't necessarily have to sell your home. You could have two homes, but only the 4 plex with a FHA mortgage.
  • Question : I had a FHA loan and then sold my house. Can I get approved again? If I can, how long do I have to wait to qualify for an FHA loan? -Edmund Answer : As long as you still meet the FHA qualification requirements, you should be able to qualify for another FHA loan right away. You many only have on FHA loan at a time, but since you sold your home this shouldn't be a problem.
  • Question : I have a FHA house now and want to buy another home. Can I sell this one and buy another through FHA? Answer : Yes, you can sell your current FHA financed home and buy another through FHA.
  • Question : I own my home, which is paid for in full. I would like to try to purchase another home for investment purposes. Will I be able to get pre-approved on a home around $128,000 even though I already own a Answer : You can qualify for a conventional home loan, but FHA loans may not be used for investment properties.
  • Question : I was approved for only $110,000 to purchase a home. Can I take out another loan on top of this one? Answer : While it is possible to take out more than one loan, it may not be wise. Probably the reason you were only able to qualify for that amount is because that is all the lender feels you can afford with your current financial situation. It may be advisable to find a home within that budget, and look at upgrading in the future.
  • Question : If I already have a home loan and wish to sell this home and make another purchase, will I be able to obtain a FHA loan? Answer : Yes. You may only have one FHA loan at a time, but if you are selling your current home to buy a new one, you are still eligible for an FHA loan.
  • Question : If I currently have an FHA mortgage can I apply for one on another home that I want to buy since my original home is listed for sale? Answer : The underwriter may be hesitant to approve you for a second FHA loan while you are still paying on your existing house. There is no guarantee that your house will sell quickly, and you may be faced with paying two mortgages for longer than you had expected. It is suggested to not apply for a second FHA Loan until you know your house has been or will be sold. The underwriter simply looks at the financial strain that paying a mortgage on two houses will cause.
  • Question : If I had an FHA loan that went to foreclosure in 2003, can I apply for another one or not? Answer : Yes. You can apply for an FHA loan three years following the date that you filed for bankrupcy. You may apply for this loan provided that you have maintained good credit for the two years following your file for bankrupcy. It is also required that all your debts have been discharged when you reapply for a loan.
  • Question : If own a home that is not FHA financed, can we buy a second home under the FHA program. We are not planning on selling the first home, but renting it out instead. Answer : As long as you live in the home you are going to buy with you FHA loan, then yes, this is possible.
  • Question : My husband purchased our existing home before we were married with a FHA loan. Can we qualify for an FHA loan now since I have never purchased a home and we now have a child and the home is to small? Answer : There are a few cases where an individual can have more than one FHA loan, including if your family has outgrown your current home. It sounds like this is the case here. It is possible you will not need two FHA loans at the same time, because the sale of your current home will allow you to close that mortgage with the bank, and perhaps you will even have additional money to put toward your new home. While we cannot guarantee you will qualify without knowing specific details of your loan, odds are if you qualified for a FHA loan in the past, you will qualify for one again.
  • Question : When can I apply for another FHA loan? I have had this loan for 7 years. -Dale Answer : In most cases you cannot have more than on FHA loan, except for these few exceptions. You may choose to refinance your FHA loan, and you can do this anytime, provided you have made enough payments to have a LTV of 90% or lower.
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