If you apply - you will have to prove you can support both mortgage payments when you are qualifying. If you cannot - you will have to wait until your income increases -or you sell your other property.
If your question was regarding a second trust on your existing home - although it is allowable to have a second on a home that is upside down - you will not find anyone that will give you a loan. Without any equity - the lender will not have any security for the money they lend.
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Licensed in Maryland, Virginia and Washington, D.C.
Assisting Homebuyer's and Seller's for 28 years
Andrew and Elena Ollick
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So, your next home will need to be conventional (minimum 5% down). The seller can only pay 3% of your closing costs, so you'll either need a little more money for closing costs or find a lender that will do a lender credit for the remainder of fees (I am licensed in GA and will be more than glad to answer other questions you may have).
Another option would be to find a renter for your home and move into an apartment that is in a safer area or a house for rent. You could always do a lease purchase and once the market goes back up, sell the house and buy the one you're in. If you decide to that PLEASE use a Realtor. A Realtor will ensure that the owner of the next home doesn't take advantage of your situation. Realtor's typically don't charge to help you with a contract. If you need one, this site is great for finding one.
When you sell your home, you will be able to obtain another FHA loan. So, chances are, you will be able to put 3.5% down (assuming they don't change the rules by then) and the GA dream may still be around to help you with down payment assistance.
One more option is that FHA loans are assumable, meaning that someone else can take over your payments. This does not require putting your house up for sale. Simply put that someone else would need to credit qualify for your home and take over the payments. You can contact FHA's hotline number 1-800-225-5342 for additional questions about assumable loans.
Good luck to you.
Chrystal, it is "possible" to get a second mortgage if that's what you are asking but not likely if you used a high LTV FHA loan when you purchased or refinanced in your area. It is no secret that values in that area of town have been challenged at best.
Give me a call, let's talk through it and see what you can do.
Ken Cook 678-439-8683
NMLS ID 208452
Employer: AmericaHomeKey, Inc. 2300 Windy Ridge Parkway, Atlanta GA 30339. Georgia residential mortgage licensee #23191. NMLS ID 15076. Equal housing lender. Subject to errors, omissions and changes. Loans subject to approval.