As long as your credit score(s) and income are good, you shouldn't have an adjustment for cash out at 60% or less of home value so it looks like a good plan.The interest rate on your second home is pretty high too so you might want to look into refinancing that also.Best wishes.
You can probably refi to a lower rate as long as your value and credit are good enough for a Conventional loan.Another option to consider would be to put less than 20% down (say 10%) and do a Streamline FHA refi. FHA will make you pay mortgage insurance for at least 5 years so 20% doesn't usually make sense for them. There are a lot of potential advantages to this so I would talk to someone about it.
I do not know if an Uncle is considered a "close" relative for this purpose. Here's what the IRS site says in their Q&A (I'd check further as you might be ok):Q. Who cannot take the credit?A. If any of the following describe you, you cannot take the credit, even if you buy a new home:You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
I am afraid it is NOT going to be worth it to you. At up to 75% Loan To Value you will be at approximately the same interest rate you are now (maybe a tiny bit lower but not enough to make the costs worth it). At 75.01% to 80% Loan To Value your interest rate will be higher than 6.5% and you can't go over 80%.So the best I can say is be happy with your 6.5% interest rate and the months/years you have already paid off!
Talk to your loan originator about a "spot loan". Here's the FHA letter giving a checklist of what needs to be satisfied which you can give to your loan originator:http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/1996_MORTGAGEE_LETTERS/96-41ML.TXTAs Bob mentioned, I would think some other listing agents have dealt with this issue so I would ask around first before diving into the "spot loan".Good luck.
Seller contributions can NOT be used toward the downpayment but I would totally agree with Chris that you should use the remaining monies to see if you can buy down the interest rate as that will keep saving you money. Also making required repairs, esp. if they save you money like a new furnace, is a great idea. Make sure the closing/prepaids cost is accurate (esp. the escrow amounts) as sometimes the preliminary estimates need to be adjusted once the tax certifications have been received. Talk to your loan originator, he/she can help figure this out for you. Best wishes.
Why don't you submit a loan request and then you will receive actual quotes based on your scenario. Then you can see what works best for you.
Put in a loan request and you will receive a number of quotes.
Generally NO but there are some very specific exceptions listed below:Exception Eligibility RequirementsA borrower may be eligible to obtain another mortgage using FHA insurance, without being required to sell an existing property covered by an FHA-insured mortgage, if the borrower is:1. Relocating2. An increase in family size3. Vacating a jointly owned property4. Non-occupying coborrowerImportant: Under no circumstances may investors use the exceptions described in the table above to circumvent FHA's ban on loans to private investors and acquire rental properties through purportedly purchasing "principal residences."
I would agree with what some others have said about contacting a mortgage broker early (3-4 months) to get your credit pulled so you can correct all the errors you will probably find on your credit report before officially applying for the mortgage.FHA guidelines require 2 years post discharge of a Chapter 7 with re-established credit (12-24 months with extenuating circumstances) and 1 year of satisfactory payments&court permission on a Chapter 13.Here are the guidelines from the FHA Handbook:A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA-insured mortgage, if at least two years have elapsed since the date of the discharge of the bankruptcy. During this time, the borrower musthave reestablished good credit, orchosen not to incur new credit obligations.An elapsed period of less than two years, but not less than 12 months may be acceptable for an FHA-insured mortgage, if the borrowercan show that the bankruptcy was caused by extenuating circumstances beyond his/her control, andhas since exhibited a documented ability to manage his/her financial affairs in a responsible manner.Note: The lender must document that the borrower's current situation indicates that the events that led to the bankruptcy are not likely to recur.A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents thatone year of the payout period under the bankruptcy has elapsed, andthe borrower's payment performance has been satisfactory and all required payments have been made on time.The borrower must receive written permission from the court to enter into the mortgage transaction.