- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Replies (6)
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
I believe that 25% rule that you are speaking of is to use the rental income to offset the mortgage payment. If you can qualify with both housing payment, then you will be fine regarding that part. If I recall, you will need to show some reserves (assets) covering a few months of both payments.
- wetdawgs
- Contributions:26810
The issue here is that you wish to have two FHA loans, and because you meet the criterion for doing this the rule is that you need to have 25% equity in home one so you can use it as a rental.
As you can't meet this 25% criterion, your most likely options would be:
a. Selling your current place and then buying a new place.
b. Using a different sort of funding.
c. If you wish to have both properties, you will probably to show that you have assets "in the bank" to cover about six months worth of mortgages for both.
Good luck.
As you can't meet this 25% criterion, your most likely options would be:
a. Selling your current place and then buying a new place.
b. Using a different sort of funding.
c. If you wish to have both properties, you will probably to show that you have assets "in the bank" to cover about six months worth of mortgages for both.
Good luck.
- Memphis Owners12
- Contributions:167
I agree with the advice given. Additionally, USDA would be a great avenue for the next loan, without having to sell your current home.
- Timothy Sutherland, "SunTrust"
- Contributions:619
the rules for having more than 1 FHA loan, in this case due to increase in family size; are here: (link):
http://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?address=4155-1.4.B.2.d
This is why you've been told you have to have 25% equity in the house you're leaving.
http://www.fhaoutreach.gov/FHAHandbook/prod/infomap.asp?address=4155-1.4.B.2.d
This is why you've been told you have to have 25% equity in the house you're leaving.
- Timothy Sutherland, "SunTrust"
- Contributions:619
for the USDA / rural housing loan you still have to show that you are ":without adequate housing".
- Larry Jacobson, "Clearpoint"
- Contributions:1214
Are you planning on selling this house short?
Help for expecting parents
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.