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fha loan for second home as primary

Hello
I have conventional loan on a condo and I have outgrown it.so planning to buy new place by renting old one, will I be able to get  FHA loan for second home which will be primary? I am on w2 with excellent credit.

my current one is underwater.

Regards
Ram
  • June 27 2012 - Sunnyvale
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Answers (1)

You can use an FHA loan to purchase a new property since you are buying it as your primary residence and your current home has a conventional loan on it.   However, you will have to be able to qualify for the new home, with using the old home payment as a debt in your overall debt to income ratio. Since you don't have 30% equity in the old property, you will not be allowed to use any of the rent you will be collecting as income.

If your income is high enough to qualify, then you should be good to go.
  • June 27 2012
  • 0Yes

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