Financing in Dallas>Question Details

Ibrahim, Home Buyer in Dallas, TX

Would I still be considered a first time home buyer if I owner financed a condo but has never had a FHA or conventional loan?

Asked by Ibrahim, Dallas, TX Sun Mar 20, 2011

Would I have to finance it as a second/vacation home (20% down) even though it will be my primary home while I rent the condo?

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You will not be a first time homebuyer if you have had ownership within the last 3yrs.

However, you can keep it as a rental and still get an FHA or Conventional loan.

Losing the FTHB status likely only keeps you from accessing some down payment assistance programs. But you can still do FHA 3.5% down

Does his answer your question?

Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends
tomburris@dallasloanguy.com
Lending all across the Great State of Texas!!
1 vote Thank Flag Link Mon Mar 21, 2011
The only way to be considered a first-time home buyer is to NOT have owned a property within the last 3 years.

Jack Gillis, M.B.A., J.D.
Nathan Grace Real Estate
5619 Dyer Street | Suite 100
Dallas, TX 75206
Cell: 214.718.4910
Fax: 469.854.0673
0 votes Thank Flag Link Sat Jul 9, 2011
No, you would be considered a first time home buyer if you bought it 3 years ago.

MY LENDER CAN DO AN FHA Loan @ 580.

PLEASE CALL ME FOR MORE INFO.

SARAH MONTES
(972) 455-2004
0 votes Thank Flag Link Tue Mar 22, 2011
Ibrahim,

As long as you have 25% equity in your current home now, you will be able to use the condo that you own now as a rental property and use the income for qualification purposes as long as...you have a executed rental agreement and proof of at least the first months rent as well as a security deposit.

You can use either FHA or Conventional financing. They each have there advantages and disadvantages. While FHA only requirs 3.5% down payment, it will usually carry a higher mortgage insurance (MI) premium. If you have the 5% to put to down, we can look into a single premium MI program that will probably give you the lowest effective payment.

I'd be happy to assist you further and answer any questions you may have. I am a licensed loan officer in the state of Texas with a nationwide direct lender. Please feel free to contact me.

Joshua A. Lerette
Senior Loan Officer
Residential Finance Corporation
800.930.7334 Ext. 1108 – Toll Free
813.402.4637 – Direct Line
727.488.7355 – Cell
888.692.5967 – Fax
Josh.Lerette@myrfc.com
http://www.residentialfinance.com
0 votes Thank Flag Link Mon Mar 21, 2011
Typically there is not really a need or much of a benefit to be a "first time home buyer" for most purchase transactions. If you plan on living in this home as your primary residence than that is how you would finance it. Second homes loans are for a true second home so your situation is not that case. The fact that you own a home will need to be disclosed to the lender for your new loan but you have every right to buy a new home as your primary residence. Loan fraud is when you buy the home as a primary residence with the intent to rent the property but in your case the home was owner financed so that is not an issue.

Don Groff
REALTOR | Mortgage Broker | Consultant
Keller Williams Realty | 360 Lending Group
512.669.5599
listings@dongroff.com
0 votes Thank Flag Link Sun Mar 20, 2011
No he's not reporting to the bureaus and I just brought it in Oct and did not write off interest. 19k left on it, I plan to pay off by July but I'm interested in a home now.
0 votes Thank Flag Link Sun Mar 20, 2011
The anwer depends on your situation, but as long as the home qualifies for FHA financing, you shouldn't have a problem. You should speak with your real estate agent about the details as well as a mortgage lender.

If you don't have one or both, I'd be happy to speak with you and give you some names of great financing people who can answer all of your questions on FHA and traditional mortgages. Call or email me if you are interested.

Because it's more than real estate. It's RAYL-Estate!

Brian Rayl, REALTOR, e-Pro, SFR
Keller Williams Elite Park Cities
972-949-4222
Brian@Rayl-Estate.com
http://BrianRayl.com
Web Reference: http://Brianrayl.com
0 votes Thank Flag Link Sun Mar 20, 2011
Does the property owner report to credit bureaus?
Do you write off interest on your tax returns?

Best confer with mortgage broker who will review your tax return
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Mar 20, 2011
It might depend on the loan and those rules for that loan.
What I often see is not what type of loan or how much down payment, but how long it has been since you last purchased or owned a home. The number I usually see is 3 years, but could be different with different programs.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sun Mar 20, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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