We wish to relocate for professional and family reasons in the next 6 months or so. We're currently in AZ and underwater to the extent we can't afford to sell this house at this time. We intend to rent it out until hopefully a combination of equity and improved market conditions allow us to break even at least!We're moving to an area near family, where we want to put down roots. Though I know it makes sense to rent a while, I've visited and checked the market out frequently, and there seem to be some really affordable options if we can purchase, if we are renting out our present house, can we possibly go FHA for a new home when w relocate? What sort of credit score would we need?Thanks in advance for any help--K
Gilbert,AZ | Oct 20th 2011
by Kriste_...
Answer
by JoeMetzler
Buying a new home when unable to sell the existing home is very common in today's market. The generic quick answer is yes, but you will not be able to use any rental income on your existing home to qualify for the new home. You will need to be able to afford BOTH house payments. As for FHA, generically speaking, you can only have one FHA loan at a time. There are some rare exceptions to that rule. Contact a local LICENSED Loan Officer and let them review your personal situation for specific answers. Buying in MN or WI? Visit www.MortgagesUnlimited.biz Oct 20th 2011
by william
Well there's good news for you... FHA has insurance for a loan product for someone in your exact situation. If you short sell your current home, and you're selling it because of a relocation, and not taking advantage of the market, you've had zero late payments on the mortgage or ANY obligation for the last 12 months, then you can get approved for a new FHA mortgage. Contact a mortgage broker, not a bank, in the area you wish to move to and apply with him. He has a vast number of lenders he can choose from and can find the right loan for your particular scenario. I'm here local if you wish to talk... 480-287-5714... WilliamAcres.com Oct 20th 2011
by david.m...
The above answers are not entirely correct. If you are being relocated for your job, and/or need a new home for family reasons, you can qualify for a new FHA loan. I have done several FHA loans for borrowers that have been relocated for their current job and for families that have outgrown their current home. If the loan makes sense and it very clear you are not trying to take advantage of the government programs to buy a rental/investment, FHA will allow a new loan.Based on what you have described, you would not be able to count any rental income from your departing residence. This means you would have to be able to qualify with both mortgage payments as well as any other credit accounts you may currently have.As far as credit scores go, we currently offer FHA loans for borrowers with credit scores down to 600. Oct 20th 2011
by Crestic...
Kriste,There is a possibility of you being able to get a new FHA loan if you currently have an underwater property, however you must be able to qualify for your existing Mortgage and also the new purchase without using the rental income of your AZ property. it is a little more complicated than standard loans but it is doable? If you are moving to California, We are an approved FHA lender and can help you with your financing needs. Please feel free to call or email me if you have any more qustions. Oct 20th 2011 |
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