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Want to buy second home and have equity on first one

I want to buy bigger home as kids are growing  and was planning to rent current home. I have around 15-18% equity on first home. Can we get second FHA loan if not then what are best options  available. How much down payment I need for the second home.
Thanks
  • May 04 2012 - US
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Answers (4)

On conventional loans, depending on qualification requirements, you may be able to put as little as 3% down and ask the seller to pay a one time fee to eliminate your monthly mortgage insurance. I do this all the time.
  • May 10 2012
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I would try this creative option.  Go to www.homepath.com and find a home you would like to bid on.  These are Fannie Mae-owned homes in all varieties of conditions.  Find a HomePath Lender and explore all of the options that you may qualify for... including as little as 3% down/97% LTV that has NO Mortgage Insurance, NO appraisal required, and other features.  These are the easiest loans I do!  I don't have a lot of other options, other than doing an 80% 1st mortgage and a 9.9% 2nd mortgage to avoid mortgage insurance and only have to have 10.1% down.  Good luck.  -Mark
  • May 10 2012
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If you have a FHA loan on your current home, you will not qualify for another FHA. Assuming that your credit is OK, you should be able to put as little as 3% down on the new home, with a conventional mortgage. You will not be able to use the rent on the current home as income, unless you have at least 30% equity in that home.
  • May 06 2012
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If you don't receive an answer from a lender, try emailing your scenario to one of our lenders in our directory
  • May 04 2012
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