Financing in Riverdale>Question Details

Chrystalmaria, Both Buyer and Seller in Riverdale, GA

I have a FHA loan now. The market is upside down for all homes. I want to move for safety reasons & the schools are not the best. Can I get 2nd?

Asked by Chrystalmaria, Riverdale, GA Mon Oct 11, 2010


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Gerard Dunn’s answer
Yes, you can get a second.

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.
Good Luck!

If you like the answer - please consider making it a "Best Answer" !

Gerard Dunn
Associate Broker
Licensed in Maryland, Virginia and Washington, D.C.

Assisting Homebuyer's and Seller's for 28 years
1 vote Thank Flag Link Mon Oct 11, 2010
You should speak with Trulia Voice, Ken Cook. Look him up - he is a mortgage expert, and his experience with FHA loans and lending is superb.

Good luck leaving Clayton!
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1 vote Thank Flag Link Mon Oct 11, 2010
Yes you can as long as your income can support both mortgages

Andrew and Elena Ollick
Amerivest Realty
Latest Post: Foreclosure Halt creates Problems
0 votes Thank Flag Link Wed Oct 13, 2010
Mr. Dunn gave a great answer (thumbs up). You can't have 2 FHA loans unless you are being forced to move (military transfer, illness causing a move etc). Safety reasons unfortunately won't work. Back in the day, you could use a rental agreement to offset the existing mortgage payment but not anymore. It can be used as a compensating factor if you do find a renter however both mortgage payments will count against your income.

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.
0 votes Thank Flag Link Mon Oct 11, 2010
Judging fromt he fact you say you want to move for safety reasons and schools...I am thinking you want to buy a 2nd home. You can certainly rent your current home and buy another assuming that you qualify for both mortgages. You cannot buy the 2nd home with an FHA mortgage however since you already have one and probably are not being transferred to another area. Only way to know what you can and can't do is to talk to a mortgage specialist....doesn't obligate you to anything to call and have a discussion with a lender.

Good luck to you.
0 votes Thank Flag Link Mon Oct 11, 2010
Careful with the answers there real estate agents - this is a mortgage question that needs to be answered from a local mortgage professional especially in the area where she is writing from.

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.
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0 votes Thank Flag Link Mon Oct 11, 2010
I think you are asking if you can move and get a second home mortgage. The answer is probably not, but you should contact a direct lender to discuss your situation in detail.
0 votes Thank Flag Link Mon Oct 11, 2010
I don't understand the qusetion. Please clarify.
0 votes Thank Flag Link Mon Oct 11, 2010
Sorry, I don't understand the question. Can you get 2nd?
0 votes Thank Flag Link Mon Oct 11, 2010
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