Financing in Stockton>Question Details

Phyllis J.Wi…, Home Buyer in Stockton, CA

presently I am paying on a mortgage loan for a home that is extremely upside down. I was wondering whether or not it would be possible to purchase

Asked by Phyllis J.Williams, Stockton, CA Sun Sep 12, 2010

another home via an FHA loan and perhaps do a short sale on my current home?

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3
You are kidding right? You can't go out and buy another home and then expect to short sell or have the bank foreclose on your existing home.
1 vote Thank Flag Link Sun Sep 12, 2010
Hi, Phyllis

That depends on your circumstances for purchasing another home. FHA is doable only if you can show a legitimate reason for leaving your current primary home. The acceptable ones are: needing a larger or smaller home due to increase or decrease in family size. Needing to go from a two stories to a single stories due to physical ailments, impairments, or age. Job relocating to another city or state over 60 miles one way away. You won't recieve one simply because your upside down in your current home. The same applies for CONV/FANNIE MAE financing as well.
0 votes Thank Flag Link Mon Sep 13, 2010
Phyllis
You actually have options.
You should visit the Housing and Urban Development website.
Check out also http://makinghomesaffordable.gov/

They have (believe it or not) a Short Re Fi. You can keep your home, have the loan balance adjusted, and reduce your interest rate.


Good luck...you'll need to qualify.
Web Reference: http://hud.gov
0 votes Thank Flag Link Sun Sep 12, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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