Home Buying in Hampton>Question Details

bnbreen, Home Buyer in Hampton, VA

Can I get a conventional mortgage at 5% down while already having an fha loan?

Asked by bnbreen, Hampton, VA Thu Aug 22, 2013

I'm trying to buy another house next summer after having bought a house at the beginning of this year with an fha loan. I plan on living in the next house and renting the fha house out as I think I should be able to do as I would have fulfilled the owner occupancy requirement of 1 year. I've thought of 2 different options:
1. Refinance the FHA property to a conventional (house was a foreclosure and have done work to raise property value) and reuse the FHA
2. Buy the next house with the 5% conventional

Im trying to be as complete as possible right now my debt to income ratio is 25% just trying to figure out what my options are and if the 5% conventional mortgage is a possibility for me.

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Answers

3
It seems that your first option seems more viable than the second. The problems with the second option is the 5% down payment. The average down payment for a conventional loan is around 10%-20%. A 5% down payment is feasible if you have a really good credit score, but that's only when you are buying your first property. Since you already own the other and plan on keeping it, it may push up the down payment percentage but it's hard to definitely say because this can all depend on your lender. You should shop around with different lenders and see what they can do for you.

I hope this helps and good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Mon Feb 24, 2014
Definitely sounds like you have a sound game plan. I would recommend that you talk with a local lender who has experience with both FHA and conventional financing and I know of several such lenders.. Just send me a email or call me at my contact info below and I will give you their contact information.

John R Beavers, Realtor
Heartland Realty LLC
757-812-0399
jb4homes@gmail.com
0 votes Thank Flag Link Fri Aug 23, 2013
Well only a lender can tell you what you will qualify for, it can be difficult to carry 2 notes in most situations.I dont think it being FHA would affect it if you qualify or both.
0 votes Thank Flag Link Thu Aug 22, 2013
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