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FHA Streamline on investment property?

I purchases a condo and used it as my primary residence for 6 years and had refinanced the mortgage on 2/5/09. I have recently rented the condo out and I am looking to do an FHA streamline. Is it possible for me to do this even though it is rented out? I was told that I can only do FHA streamline on an investment property if the original mortgage was taken out for an investment property and it wasn't because it was originally my primary residence. The condo is under water about $30k so I can't do a conventional mortgage. Thanks for any advice!
  • September 12 2012 - Middletown
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Answers (1)

Only certain lenders will do FHA Streamlines on an investment property.  Nine times out of ten your current mortgage company will not.  When doing an FHA streamline the lender goes off of the original purchase price.  LTV / income and credit history is not an issue when doing a "non credit qualifying" streamline.  The only thing needed is to verify payments have been made on time for the last 12 months and there are no lates. The only thing we needs is and ID and an asset statement that shows you have liquid funds in order to establish your new escrow account.  Once the old mortgage is paid off you will receive a check back from them for the balance in the old account.  It is a catch 22.  You put the money up but you get it back.  Please review my profile.
  • September 12 2012
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