Home Buying in Boston>Question Details

Cam8234, Home Buyer in Boston, MA

Can I use equity on my fha owner occupied multi family home towards a down payment for a single family home?

Asked by Cam8234, Boston, MA Wed Aug 7, 2013

I purchased a four unit multi family home two years ago in a desirable area. I purchased it with an FHA owner occupied and live in the smallest unit. The three other units rents still pull in a monthly profit which would be even more if I moved and rented my unit. Over the last two years I've been paying down the principle, I've made improvements and according to market data the value has increased quite a bit. I recently got engaged and we are looking to purchase our own single family home. Im interested to know two things. How would it work with my FHA owner occupied loan I already have if I want to move? And would I be able to use the equity from that property towards a single family home?

Thanks in advance!

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The short answer is yes, with the information provided, you should have no issue obtaining the funds from your current property to purchase a new one. FHA guidelines allow for a cash out refinance up to 85% of the current value of your home, which should work in your case. Also, having rental income on your current property will help with qualifying for the new home. I am a Senior Consultant with a National Lender located in Cranston, RI. I would be happy to speak with you further about your scenario, and offer any help I can. Please feel free to contact me at GDiFilippo@mygpnbank.net at anytime.
0 votes Thank Flag Link Wed Nov 6, 2013
It is immoral for one man to own another's home. If you want to move, then move and sell the house to one of your tenants. Don't become a slum lord. If you're wiling to live there, then you can rent the other rooms. Why don't you and your fiancee just move into one of the bigger units? Why do people think it's OK to take rent from people when the renters could just buy a house and pay less using FHA loans? You people are knowingly harming others for your own benefit.
0 votes Thank Flag Link Thu Oct 31, 2013
Mike, you may be one of the dumbest people to walk the earth, for all mankind, I have you have not reproduced.
Flag Thu Feb 13, 2014
Flag Sat Nov 30, 2013
You should talk to a local bank or mortgage originator. People do this all the time.This is all predicated on the fact that you :

One- have enough equity to do a cash out refi or secure a home equity line of credit
Two- qualify carrying both mortgages
0 votes Thank Flag Link Thu Aug 8, 2013
I am sure you can. However, you should contact a mortgage broker or a bank to get a clear answer to your question.
Please let me know if you need a few MB recommendations.
Kind regards,
0 votes Thank Flag Link Thu Aug 8, 2013
A mortgagte broker/lender could better answer your question than anybody else.

Best Of Luck
0 votes Thank Flag Link Thu Aug 8, 2013
It is going to be decided by the amount of equity you have in your current property.Please fee free to contact me to go over your options, I work for a local lender that has been in business since 1959.

Jeff Mann
Loan Officer
Mid-Island Mortgage
NMLS# 1032683
(617) 584 0540
0 votes Thank Flag Link Thu Aug 8, 2013
It will depend on the amount of equity you have. I would suggest contacting me through my profile to discuss options.
0 votes Thank Flag Link Thu Aug 8, 2013
It sounds like you need to speak with a Mortgage Professional not a Realtor.
0 votes Thank Flag Link Wed Aug 7, 2013
You MIGHT be able to get another FHA loan considering that your household will now increase. So if that's what you're looking to do, you'll be able to put a 3.5% downpayment and take advantage of the other aspects of a FHA loan. On the downside, FHA has become much more expensive these days, so I would definitely encourage you to put at least 5% downpayment and do a conventional loan instead.

There are several things that also need to be considered. Just how much equity do you have on your current residence? If you have less than 25-30%, you might not be able to finance another property. There are several different things that come into play in addition to you using the equity towards downpayment.

Co sider speaking with a Loan Officer and allow them to review all necessary documents to see what your options are. I'm always available if you need someone. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Wed Aug 7, 2013
Thanks for the info! I have about 25% equity, and the current mortgage is in my name. My fiancé and I have about 10% down for our price range but would like at least 20%. Also, we would be applying for a joint mortgage so that should make it easier right?
Flag Wed Aug 7, 2013
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