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Pros an cons of a FHA Streamline loan.

I want to but a condo and down size. Can I rent my current property with a FHA Streamline loan? by tate0617553 from Hamilton, Ohio. Mar 10th 2015 Reply


Daniel Walsh (dwalsh)
#51 ranked lender in Ohio - 11 contributions

Hi,This is definitely possible. Please feel free to contact me via email or by phone to discuss further. My email is dwalsh@bankingunusual.com. Phone is 513.490.1585. Thanks!Dan WalshPeoples BankSenior Mortgage Banker

Mar 10th 2015
Call: (513) 618-6563       Send a Message    Website
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Zachary Williams (zwilliams@usavingsbank.com)
#87 ranked lender in Ohio - 5 contributions

If you do the FHA Streamline refinance you can lower your payment and what ever you do with the condo after you close is up to you. I can help with your FHA Streamline Refi with almost no out of pocket expense. I look forward to hearing from you.

Mar 10th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

Your question is confusing.. If your CURRENT property has an FHA loan, then you can rent it out if you move.. Guidelines state you must qualify for the new housing payment as well as your existing mortgage payment, but you might not be able to use any potential rental income from the new tenant... Also, the new home you're looking to purchase will need to be a conventional loan.. in most cases, you cannot have 2 FHA loans out at one time.. Conventional will require a minimum of 5% down, and if your looking at condo's, then the complex must be approved to obtain financing.. for more direct questions regarding your scenario, it's best you contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Mar 10th 2015
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Stacy Rowlett (srowlett@primeres.com)
#90 ranked lender in Utah - 3 contributions

It is allowed to rent a home on which you have an FHA mortgage. The challenge is purchasing your next home with a second FHA mortgage. It is possible, but you will need to document the reason that you are moving. Acceptable reasons for purchasing a new home with another FHA mortgage include moving a significant distance from your previous home, or a change in family size which requires a family to UPSIZE. Downsizing may be a little more questionable.

Mar 10th 2015
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Derick Condron (rightstartoregon)
#33 ranked lender in Oregon - 597 contributions

So the FHA streamline loan is actually a refinance option that allows you to have less documentation provided. If you want to rent out your current property and buy a new one you will need to more than likely qualify with both payments against you have a few months reserves for the PITI on the property you are vacating and have at least 3% for a down payment.

Mar 10th 2015
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,228 contributions

Yes, you can refinance with a FHA Streamline but you have to disclose as part of the process that you intend to rent it out (or already do). As someone else pointed out, you may not be able to obtain another FHA loan to purchase the condo and you may have to qualify for another mortgage without counting any rental income on the other property.

Mar 10th 2015
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