Financing in Pittsburgh>Question Details

Dlawiii, Home Owner in Pittsburgh, PA

Can I "assume" an FHA loan if I already have an FHA loan for my primary residence?

Asked by Dlawiii, Pittsburgh, PA Sat Apr 16, 2011

I have an FHA loan on my primary residence. I am purchasing a rental property and assuming the FHA loan of the current owner. The mortgage I am assuming is through Citi and they are telling us it its no problem that the loan is being assumed by an investor since the original residency terms of the loan were satisfied. If I already have an FHA loan will I be allowed to "assume" another one. Is there an FHA rule against this or would it depend on the lender?

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Good question. I would say FHA would NOT allow that. As Alan mentioned, lenders can do what they want but FHA may not insure it and I'd say they wouldn't because you are not allowed to have two FHA loans and it would come up that you already have one. Good luck!
0 votes Thank Flag Link Mon Apr 18, 2011
Dlawiii

I am surprised by Citi's answer. The FHA will be insuring the loan so their rules would certainly apply.
My thought is that Citi can do what they want but it will not be insured by the FHA if it does not meet their guidelines. If you were to go out and get another FHA property you would need to show 25% equity in your current home before FHA would allow you to buy another. Obviously in this case your current home would become an investor property. So in effect FHA will continue to insure investor loans where the primary residence requirements have been met. This is different in that you are assuming a second loan as an investor.Try calling 1 800 CALL FHA. be sure to have your loan information to give to them.

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
0 votes Thank Flag Link Sun Apr 17, 2011
You should be good for an assumption. Make sure Citi knows all the details upfront.

Good luck!
Web Reference: http://fredglick.com
0 votes Thank Flag Link Sat Apr 16, 2011
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