Zillow Advice: FHA and VA Loans - Can we get an FHA loan while renting our condo http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ Zillow Advice | Zillow Real Estate FHA guidelines will allow ... http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ FHA guidelines will allow you to use an FHA loan for a second home as long as it is your primary residence. So in other words, you can definitely get an FHA loan even though it is your second home because you actually plan to live in it.<br/><br/>Well I hope this helps! If you have any further question or if you would like a loan, feel free to contact me. Also, if you found this comment helpful, please leave me a review!<br/><br/>Good Luck! Tue, 27 Aug 2013 19:13:00 GMT http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ 2013-08-27T19:13:00Z Yes you most certainly can. ... http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ Yes you most certainly can. Just as long as you possess 25% equity in the property and can produce an executed lease agreement as well as the new tenants deposit check. If you have 30% equity you can avoid using FHA on the new purchase all together. This would protect you from higher rate mortgage insurance which is now for the life of the loan with FHA financing. I hope this was helpful. Please feel free to contact me with any questions you may have. Tue, 27 Aug 2013 17:16:00 GMT http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ 2013-08-27T17:16:00Z George Raymondo is right ... http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ George Raymondo is right on the money! Tue, 27 Aug 2013 15:42:00 GMT http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ 2013-08-27T15:42:00Z Here's the story. If you ... http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ Here's the story. If you plan this strategically, you can accomplish what you want to do providing you follow these instructions. Unless you can afford for the lender to hit you with both the Condo payment and the payment on your new home purchase.&nbsp; Here are the steps:<br/><br/>1.) You will need to rent out the Condo before the end the year, therefore claiming at least (1) month of rental income on your Sch E of your 1040s. You CAN claim your typical mortgage interest deduction, taxes, and insurance, but do NOT claim any loss of rents.<br/><br/>2.) You will need to be able to provide a 1 yr rental agreement, proof of their deposit and first months rent&nbsp; into your bank account.<br/><br/>3.) Since you are renting out your Condo, you will need to find a temporary residence while searching for a home. You can stay w/ relatives, extended stay hotel, or rent month to month your choice as you don't&nbsp; need a VOR (verification of rent) since you are a homeowner. You're personal documents i.e. bank statements, paycheck stubs, etc. better have your new address to reflect your change in address.<br/><br/>3.) Since you are applying for an either FHA, VA or USDA loan (NOT Conv) you <u><strong>will be</strong></u> able to offset your Condo mortgage payment with a factor of 75% of gross rents unless you have 25% equity or more in your Condo then it's 95% rent factor. Conventional loan programs require a two history of filing a Sch E. so that's not an option for you.<br/><br/>Before you move forward, you will need to contact a lender like myself who underwrites loans to minimum government guidelines with little or no overlays, as many lenders will not allow what I have written above as they have their own self imposed restrictions. All of this is irreverent if you can afford the lender to hit you with both payments. <br/><br/>The only caveat would be if the Condo was financed with an FHA loan. If that is the case, you would need to have 25% equity in the Condo or be able to put 25% down in order to have (2) FHA loans. Yes, I said it. You can multiple FHA loans as long as they are not high balance LTV loans. Hope this all make sense, let me know if you have any questions. <br/><br/>Best of Luck! Tue, 27 Aug 2013 14:06:00 GMT http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ 2013-08-27T14:06:00Z Joe, yes that is correct.&nbsp; ... http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ Joe, yes that is correct.&nbsp; Usually lenders won't count rental income unless there is at least 30% equity in the rental property.&nbsp; Thanks for pointing that out! Tue, 27 Aug 2013 13:59:00 GMT http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ 2013-08-27T13:59:00Z Unless I am mistaken NO lender ... http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ Unless I am mistaken NO lender is going to count the rental income. &nbsp;Based on the post the borrower is possibly underwater on the home thus not having enough equity in the home to be able to count that income. &nbsp;As long as the loan on the condo is not an FHA loan then you have no problem going for a FHA mortgage. &nbsp;You will just have to qualify with both payments Tue, 27 Aug 2013 13:44:00 GMT http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ 2013-08-27T13:44:00Z You can get an FHA loan being ... http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ You can get an FHA loan being that the new home will be your primary residence.&nbsp; Most lenders will accept rental income as long as you have a fully ratified rental lease agreement with a tenant before closing on the new house (a lease with at least a 1 year term).&nbsp; In that case 75% of the rental income can be used for qualification Tue, 27 Aug 2013 12:58:00 GMT http://www.zillow.com/advice-thread/Can-we-get-an-FHA-loan-while-renting-our-condo/508750/ 2013-08-27T12:58:00Z