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Selling house, How long to buy again withFHA loan

I would like to sell my house early next year.  Bought in MAY 2012.  Would like to purchase again upgrade to bigger house with FHA loan. How loong do I have to wait before I can purchase house with FHA loan?
  • November 24 2013 - San Bruno
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Answers (11)

Call Justin Sheftell!

Some of these people can't even read.

And yes, stop saying the acronym F-H-A! Memorize the psuedo-names Fannie Mae and Freddie Mac!
  • November 25 2013
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You are not allowed to have two FHA loans at the same time. So in order to avoid this you will have to sell your current home  so then you will be able to obtain another FHA loan. The best thing for you to do is to speak with a lender directly. There are lenders like myself that would be glad to speak with you. Well I hope this helps! If you have any further questions or would like a loan, feel free to contact me.

Good Luck!
  • November 25 2013
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If you are expecting that much proceeds from your sale you could look to purchase now with your purchase offer being contingent on the completion of the sale of your current property (assuming you don't want to move twice). 

If handled properly both transactions could close within 1 day of each other and you would then be able to make 20% down payment (or if not close to 20% with much better MI terms on conventional).   

I would advise to take FHA out of your vocabulary and focus on getting new Fannie Mae conventional financing contingent on your sale.  Since most markets in CA have the seller in control, I suspect you can find a patient buyer willing to line up to buy your house with a longer escrow to allow you time to find your new purchase and the seller of your new purchase would likely be willing to accept your offer if you can show you are already in escrow to sell combined with a strong "TBD" approval letter that your loan originator can help with.
  • November 25 2013
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Profile picture for Brookstone Mortgage
You need a good loan officer to explain all your options to you. I happen to know of one in California. I'd be happy to show you all of your options. 
  • November 25 2013
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If you have an FHA loan you have the equivalent of Mortgage Insurance. I think you must have a Fannie Mae HomePath loan. Those are two different things.

You will have big Mortgage Insurance costs on a new FHA loan, as you will with a conventional loan with less than 20% down. But conventional PMI is only about half as much.

FHA requires minimum of 3.5% down and conventional minimum is only 5%. So to make the Mortgage Insurance portion of the loan 50% cheaper only requires 1.5% more down payment. Anyway, you've got thinking and learning to do.

Maybe, you should look for another HomePath house. You can sell your house, and buy a new one, without ever renting if you do it right.
  • November 24 2013
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Profile picture for user2713534

Yes your right.. I could go with Conventional Loan. Problem is I thought you had to put down more than 5%, thats the reason why i was leaning towards FHA.  I have no mortgage insurance.  I bought my house at $344K Homepath. Houses, selling near by are going for $480k - $550K.  I know I will net a nice profit.  actually mine has a bigger lot.

So I sell my house... Problem -I would have to rent (bummer).  Then look for my dream house.  House's are rapidly going up in value in my area San Bruno, CA.  Mutiple offers on house's.  However I am learning so much with realestate.  Lately I have visited quite a few open houses, and after the holidays I am ready to move on.

I thank all for responding to my questions.....

  • November 24 2013
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Hamp hit the nail on the head.   Save up 5% and go with a Conventional Loan.  Shop around for a good local "mortgage guy" and make sure that your LO knows about all the options for Mortgage Insurance.  
  • November 24 2013
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Are you not making enough from your current home's sale to qualify for 5% down conventional loan? Why would you want another FHA loan? With your credit scores you should qualify for a less expensive option.

It doesn't seem like you understood the Agents answer below. They mean you have to record the payoff of your existing FHA loan before you can get a new one.

You could possibly do a new FHA loan the same day or within a week of closing on the sale of your new home. The intricacies of the situation would have to be worked out. But the key is, as Barb (a Lender, and a smart one) says, you can't normally have two at once. If you've outgrown your house, you may be able to get an exception, and ease the negotiation of the intricacies of your wishes. But again, why do you want an FHA loan the second time?
  • November 24 2013
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As soon as you close on the sale of your existing home that has an FHA loan, you can obtain another FHA loan. You just can't have two at the same time because of occupancy guidelines. There are other guidelines for occupancy, but they don't seem to apply in your scenario. Good luck and happy house hunting!
  • November 24 2013
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Profile picture for user2713534
Sharon,

I think you mean I can sell.  I bought FHA on MAY 2012, recored June 2012 (Homepath).  Credit score 711 will be 745 next month. Job been at 23 years great income.  I guess next stop would be to find realtor.  Would it be a good idea to use my realtor who I used to buy home?

Thank you in advance.
  • November 24 2013
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As soon as your current FHA mortgage is paid in full and payment is recorded you will be eligible for a new FHA loan, provided you meet the FHA guidelines as a purchaser, i.e. income, credit score, etc. 

  • November 24 2013
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