Hi Phil -
Tony's answer is right on. I would just add that you'll need good equity in the property you just rented out that currently has the FHA loan because you will be refinancing it as an investment property and the LTVs are much lower. Additionally, there are a few specific circumstances where you can have a second FHA loan outstanding - i.e job transfer to a different location, change in family size, etc. It's best to talk to an experienced mortgage broker to find out about your specific circumstances. Let me know if I can help!

Brian Cardenas
President / Mortgage Consultant
Antigua Capital Funding
Email: brianc@antiguacapital.com

Phil,

Please take a moment to call my lender Bryan Sheets 623-594-7600 he will be able to answer all your questions! If he is in a meeting ask for his assistant Stephanie!

All My home owners appreciate his business and service!

Lucinda Tkach
Windermere Central
lucindat@windermere.com

Phil,

Yes, you need to refinance the rental into a conventional (non FHA) loan in order to qualify for a new FHA loan for a new primary residence. If you did not include the rental property in your taxes last year as a rental then you must qualify with both house payments when applying for the new FHA loan. If you did then you can use 75% of the rental amount to offset the rented homes mortgage payment. Keep in mind that FHA loans are for primary residence, not 2nd homes, that you plan to live in for the next year after which you can do what you want (rent it out, etc)

If you would like tom look at this closer and more specific to your situation give me a call or go to my website.

Tony