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Answers (6)
Best Answer
- Shane Milne, "ShaneTheMortgageMan"
- Contributions:463
Not sure if people realize you can actually have more than 1 FHA loan at a time, given several situations:
1. Relocation - if the borrower is relocating for work and establishing residency in an area outside reasonable commuting distance
2. Increase in family size - if the number of legal dependents increased to the point that the present house no longer meets the families needs, need to have at least 25% equity in home with the FHA loan that is being vacated
3. Vacating a jointly owned property - as in the situation where someone gets divorced and the vacating ex-spouse will be purchasing a new home with an FHA loan
4. Non-occupying borrower - you can co-sign on someone else's FHA loan and get an FHA loan of your own.
Guess which one applies to arbritton?
As far as renting out your old home, as long as you've lived in it as your primary residence for the first year of the loan then you should be able to convert it to a rental.
1. Relocation - if the borrower is relocating for work and establishing residency in an area outside reasonable commuting distance
2. Increase in family size - if the number of legal dependents increased to the point that the present house no longer meets the families needs, need to have at least 25% equity in home with the FHA loan that is being vacated
3. Vacating a jointly owned property - as in the situation where someone gets divorced and the vacating ex-spouse will be purchasing a new home with an FHA loan
4. Non-occupying borrower - you can co-sign on someone else's FHA loan and get an FHA loan of your own.
Guess which one applies to arbritton?
As far as renting out your old home, as long as you've lived in it as your primary residence for the first year of the loan then you should be able to convert it to a rental.
- Stephanie Crawford, "AgentSteph77"
- Contributions:158
Assuming a loan is not common in today's market because interest rates are still at near-historic loans. And like Mike says, you can only have one FHA loan at a time. In order to qualify for a conventional loan on a new house, most lenders now require that you have at least 30% equity in the current home.
Have you considered trying to short sale your current home? You'd take a hit on your credit and you wouldn't be able to purchase a new home for 2-3 years, but it may be a viable option for you to get out from underneath it.
Have you considered trying to short sale your current home? You'd take a hit on your credit and you wouldn't be able to purchase a new home for 2-3 years, but it may be a viable option for you to get out from underneath it.
- wetdawgs
- Contributions:26840
A quick search suggests the assumption costs are $600 to $1000, but I'm not a lender so hopefully one will come along and give the true values.
Two key features to make a loan assumption attractive: the interest rate is below current market rates, and the loan being assumed is less than the market value of the home. Next to no one will assume an underwater loan.
Two key features to make a loan assumption attractive: the interest rate is below current market rates, and the loan being assumed is less than the market value of the home. Next to no one will assume an underwater loan.
- arbritton
- Contributions:16
Wetdawg thanks for response....our fha loan is assumable and I thought that it would b attractive to those who qualify but didn't want to outlay upfront costs on a new loan. do u know the cost range for assum fha mortgages?
- wetdawgs
- Contributions:26840
You write "can someone assume our loan?" If your loan is assumable (details available in your paperwork), the person assuming the loan would have to qualify. However, who would want to assume a loan for more than the property is worth?
- Mike Bjork, "MortgagePlannerMike"
- Contributions:346
You're only able to have 1 FHA loan at any time. If you have good credit and can qualify for both mortgages without using the rental income from current residence, then you may be able to go with a conventional loan with as little as 3% downpayment.
Relocating_Renting My Home (FHA loan)
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