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purchasing second home as primary residence

My husband and I own a home in Virginia.  He is active duty and is relocating to NC but I will remain in Virginia.  We are under contract to purchase a condo that he will use as his primary residence and we used the VA to purchase our home in Virginia.  Could my husband qualify for an FHA loan if it is written in his name only?  Our bank initially told us we could but as we get closer to closing they have now told us that it is a vacation home and we must pay 20% down on a conventional loan.  We both have credit scores over 800 and a VERY low dti; this is frustrating and we are looking for another lender.  Any advice is most helpful as time is running out!
  • June 11 2010 - US
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Answers (11)

Both of you would not be able to buy it as a primary dwelling because you are staying in VA.  And, your husband buying it alone as a primary dwelling would be tricky and questioned by most underwriters.

Is the condo in or near a resort?  How far is it from your current residence?  How long will he be stationed in NC? 

  • June 11 2010
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The condo is located 300 miles from our home in Virginia and his orders have him in NC for the next 3 years.  The condo is on a beach but that is where the base is. ?
  • June 11 2010
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It will be questioned since it is in a resort.  Its really going to depend on the lender/underwriter.  It makes sense because he will be stationed there for three years, but it will be questioned because spouses usually do not live apart and the second property just happens to be in a resort.  Lenders have experienced huge losses on loans where there were occupancy issues.

Will he qualify for the loan alone with both mortgage payments?  What do you plan to do with this property in three years?
  • June 11 2010
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This is tricky, but it is doable. I recently did a purchase where the borrowers had an FHA loan and then bought a house with a VA loan down the street. They had to explain that the new house was going to be their primary residence, but that was the only extra hoop we had to go through.

I cannot do your new loan in NC, but if you need a list of some good lenders in the area, I would be glad to provide you a few names.
  • June 11 2010
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He will qualify for both based on his income alone.  We aren't happy about the situation but my job requires me to remain in VA so we're trying to make sure we are getting the best possible loan option available.  We will keep the condo, whether he remains in NC or retires. 
  • June 11 2010
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Then you should be okay.  You will just need a good letter of explanation and proof from employer. 

I can not speak for all lenders.  I feel some will be okay with this and some won't.  Good luck to you.

  • June 11 2010
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Bob, many thanks, you have been most helpful.  I will go back to my lender and ask them to take another look.  If they are not able to work with us, I will take our credit scores to another lender.  Thanks again!
  • June 11 2010
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If you husband has orders that say he is being transfered to NC, he should be ok to do a FHA loan. You will have to go on title. The condo has to be FHA aprroved. If you click my profile picture and send me the Condo name I can look it up to make sure it's FHA approved .
  • June 11 2010
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Hi Anna.  The condo is FHA approved.  My lender is telling me that my husband is the owner/occupant of our current home in Virginia so they can't make him the owner/occupant of the condo in NC, even with military orders.  My fear is that I cancel the application with them, find another lender and run into similar problems with their underwriter.  I don't know if I have an inexperienced mortgage officer or a difficult bank...or both!!!
  • June 11 2010
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Your "mother or father" received some excellent advice for you on this thread  http://www.zillow.com/adv ... y/353239/ .... Happy funding, Rudi
  • June 12 2010
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When he used his VA loan, he said that he was going to use the house as his primary residence. Circumstances have changed since then though and you all are in need of a new primary residence.

Go back to the loan officer one more time and if they will not see your logic, go find another one.
  • June 14 2010
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