Zillow Advice: FHA and VA Loans - can I get a second FHA loan to buy another home? http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ Zillow Advice | Zillow Real Estate I'm looking to purchase a ... http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ I'm looking to purchase a home but the cost of the home with the rising costs in Austin is just outside (Roughly 20k) of the FHA limit. &nbsp;If we were to have an outside investor contribute the remaining amount, would this be acceptable? Sun, 08 Sep 2013 03:08:00 GMT http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ 2013-09-08T03:08:00Z Here's an article with a ... http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ Here's an article with a HUD hanbook reference that I found on the internet:<br/><br/><p>Can a person have more than one FHA loan?</p><p>To prevent circumvention of the restrictions on FHA-insured mortgages to investors, FHA generally will not insure more than one mortgage for any borrower (transactions in which an existing FHA mortgage is paid off and another FHA mortgage is acquired are acceptable). Any person individually or jointly owning a home covered by a mortgage insured by FHA in which ownership is maintained may not purchase another principal residence with FHA mortgage insurance except under the situations described below. Properties previously acquired as investment properties are not subject to these restrictions.<br/><br/>FHA will not insure a mortgage if FHA concludes that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining investment properties, even if the property to be encumbered will be the only one owned using FHA mortgage insurance.<br/><br/>We do not object to homebuyers using FHA mortgage insurance more than once if compatible with the homebuyer's needs and resources as follows:<br/><br/>A. Relocations. If the borrower is relocating and re-establishing residency in another area not within reasonable commuting distance from the current principal residence, the borrower may obtain another mortgage using FHA insured financing and is not required to sell the existing property covered by a FHA-insured mortgage. The relocation need not be employer mandated to qualify for this exception. Further, if the borrower returns to an area where he or she owns a property with an FHA-insured mortgage, it is not required that the borrower re-establish primary residency in that property in order to be eligible for another FHA insured mortgage.<br/><br/>B. Increase in Family Size. The borrower may be permitted to obtain another home with an FHA-insured mortgage if the number of legal dependents increases to the point that the present house no longer meets the family's needs. The borrower must provide satisfactory evidence of the increase in dependents and the property's failure to meet the family's needs. The borrower also must pay down the outstanding FHA mortgage (secondary liens do not need to be paid off or paid down) on the present property to a 75 percent or lower loan-to-value (LTV) ratio. A current residential appraisal must be used to determine LTV compliance. Tax assessments, market analyses by real estate brokers, etc., are not acceptable as proof of LTV compliance.<br/><br/>C. Vacating a Jointly Owned Property. If the borrower is vacating a residence that will remain occupied by a co-borrower, the borrower is permitted to obtain another FHA-insured mortgage. Acceptable situations include instances of divorce, after which the vacating ex-spouse will purchase a new home, or one of the co-borrowers will vacate the existing property.<br/><br/>D. Non-Occupying Co-Borrower. A non-occupying co-borrower on property being purchased with an FHA-insured mortgage as a principal residence by other family members may have a joint interest in that property as well as in a principal residence of their own with a FHA-insured mortgage. (See HUD Handbook 4155.1 for additional information). Under no circumstances may investors use the exceptions described above to circumvent FHA's ban on loans to private investors and acquire rental properties through purportedly purchasing "principal residences".<br/><br/>Considerations in determining the eligibility of a borrower for one of these exceptions are the length of time the previous property was owned by the borrower and the circumstances that compel the borrower to purchase another residence with an FHA-insured mortgage. In all other cases, the purchasing borrower either must pay off the FHA-insured mortgage on the previous residence or terminate ownership of that property before acquiring another FHA-insured mortgage.<br/><br/>Handbook 4155.1: 4.B.2.c-d</p><br/><br/><strong>REFERENCE</strong><p>Handbook 4155.1: 4.B.2.c-d</p><br/><strong>REFERRAL LOCATION</strong><br/><br/><br/><strong>DISCLAIMER</strong><p>DISCLAIMER: All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.</p> Sun, 09 Dec 2012 17:05:00 GMT http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ 2012-12-09T17:05:00Z Here are the facts, every ... http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ Here are the facts, every lender is different and have their own interpretation of the HUD/FHA 4155. But I have done several FHA Loans where the borrower(s) already had an existing FHA Loan. The rule is you can't have two HIGH LTV FHAs. So if your existing home has equity you can actually finance another home and go FHA. Another example is with co-borrowers. If a co-borrower wants to go on and purchase a home on their own, it is possible. There are some hoops that you have to go through, but it is done all the time. Please feel free to contact me and I will review your case and see what are the best options for you.<br/><br/>Best of Luck! Thu, 04 Aug 2011 05:15:00 GMT http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ 2011-08-04T05:15:00Z You are not supossed to be ... http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ <p>You are not supossed to be allowed to have more than 1 FHA loan but I have&nbsp;had someone in the same exact situation obtain a second FHA loan and keep her first as a rental. She had to prove to the bank that she had been living in the property by providing utility bills, etc...and she wrote a very convincing letter stating that she was not comfortable with the area. It will depend on the lender to decide if they are comfortable with the situation so my advice would be to go to a larger lender rather than a smaller one.</p> Wed, 03 Aug 2011 20:22:00 GMT http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ 2011-08-03T20:22:00Z Not likely...With that situation ... http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ Not likely...With that situation you described... Tue, 02 Aug 2011 04:34:00 GMT http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ 2011-08-02T04:34:00Z It is possible to have two ... http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ It is possible to have two FHA loans, but the circumstances are quite rare.&nbsp; You don't describe a situation where this is very likely. Hopefully a lender stops by.&nbsp; <br/><br/>I recommend going the traditional route.&nbsp; Sell this home, then move on to one in a neighborhood that makes you happier or start a neighborhood group and start gentrifying this one.&nbsp;&nbsp; Or, build up equity and a good down payment plus reserves so you are eligible for two mortgages.<br/><br/><br/><br/> Tue, 02 Aug 2011 03:59:00 GMT http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ 2011-08-02T03:59:00Z well, we bought our first ... http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ well, we bought our first home with an FHA loan, but we discovered the it's in a not so good&nbsp;neighborhood. So what we are trying to do is to rent this house and buy a new one, but we can't afford 20% down for a new home. Someone told me that it is possible to have 2 FHA loans. Tue, 02 Aug 2011 03:44:00 GMT http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ 2011-08-02T03:44:00Z Probably not but as was posted ... http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ Probably not but as was posted the details matter. Tue, 02 Aug 2011 03:05:00 GMT http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ 2011-08-02T03:05:00Z Please tell us a bit more ... http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ Please tell us a bit more about the situation.&nbsp;&nbsp; FHA loans are for your primary residence.&nbsp;&nbsp;&nbsp; Are you moving or are you proposing using one for an investment property?&nbsp; Tue, 02 Aug 2011 02:32:00 GMT http://www.zillow.com/advice-thread/can-I-get-a-second-FHA-loan-to-buy-another-home/409942/ 2011-08-02T02:32:00Z