Home Buying in Orange County>Question Details

Emyker, Home Buyer in Westminster, CA

Am I qualify for FHA loan if I currently own a condo which is a rental & purchased over 8 years ago?

Asked by Emyker, Westminster, CA Mon Dec 26, 2011

I want to purchase a condo for myself to live. But I have another condo as a rental purchased over 8 years ago. I want to put as little down as possible for this new condo. Do I qualify for FHA loan for this new condo I like to purchase?
Old rental condo market value 150,000 and owe about 80,000 and new condo I like to purchase around 100,000.

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I am currently working with a client right now in a similar situation and the bank told me that he can be approved for a FHA loan while owning another property as long as he plans on occupying the condo that the FHA loan is on. I would call the lender that you are planning to use and ask them directly to be sure.
1 vote Thank Flag Link Mon Dec 26, 2011
Hello Emyker,

You can qualify for the FHA loan, no problem. Plus you have sufficient equity to qualify with rental income. Depending on what the rest of the factors look like, purchase price, monthly income, debt, fico scores, etc you should qualify for this purchase. If you have any questions, please feel free to give me a call or send me an email.

Michael Abram
First Capital Mortgage
NMLS #235060
Direct: (310) 434-1718
Cell: (310) 995-0975
mabram@firstcapitalmtg.com
0 votes Thank Flag Link Tue Dec 27, 2011
Hi; A good lender should be contacted to go over your options. I can recomment one if you like.
Joanne Casteel
Century 21
714 865-9547
#00837727
0 votes Thank Flag Link Tue Dec 27, 2011
The answer is a qualified "yes" depending on your qualifying for the new loan which will include an analysis of your rental property. There is no limit to the number of FHA loans that you can be responsible for as long as they are in good standing and you meet the underwriting guidlines of the moment......further questions? Just ask...Linda M. Lukas, Broker 714-381-1723 DRE#00698435
0 votes Thank Flag Link Mon Dec 26, 2011
Hello Emyker, this is really a question you should aim at a local mortgage broker or loan officer, if you need one, feel free to call me or email me, I know a few.

Have a great day,
Heather Paul, Realtor
Coldwell Banker
310-586-0364
0 votes Thank Flag Link Mon Dec 26, 2011
Hi Emyker,

If your numbers are accurate, I doubt that you'll have a problem qualifying for the new place - assuming your old one will be rented at a positive cash flow. ( More coming in, as rent, than going out, as your mortgage, taxes, and HOA fees.)

Your biggest issue might be finding a condo development that will allow FHA financing, as many developments have been dis-approved by FHA. A good lender can probably offer financing alternatives, in case FHA loans won't work in your targeted neighborhood.

I can recommend both a good lender, and a good Realtor, if you need either one. Good luck in your purchase.
Web Reference: http://SouthOC.info
0 votes Thank Flag Link Mon Dec 26, 2011
Do you currently have an FHA loan on your condo? HUD allows you to purchase another property using the FHA program if you are purchasing a larger property for a growing family, job relocation, etc. I am a real estate professional with over 7 years experience working as a Sr. Loan Officer. Please call me to discuss at 949-303-9406 I would love to help you. Thank you!
0 votes Thank Flag Link Mon Dec 26, 2011
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