Hi, YDR, sorry it took me so long to respond, but I went one step further and contacted my lender to ask for the answer to this question. Here is his response....
Answer: Even if the title did not have her on it, she would not be able to purchase a home using an FHA loan. There are only certain circumstances that allow a couple to purchase using FHA while currently having an FHA loan. Your business moved you out of state to a new job or you just got married and your family sized increased beyond the capacity of the current home.
If you have any further questions, please feel free to call me or email me, and I can also put you in contact with my lender.
The Van Group
Exceptions for Divorced Persons and Co-signers
Exceptions to the single-loan policy may apply if the person looking for a second FHA loan is a co-borrower on an existing loan. The FHA handbook mentions two circumstances where an exception can be made. If a borrower is divorced and the ex-spouse is living in the couple's insured mortgage home, the borrower can get another FHA-insured loan for a new primary residence. The other exception involves an individual who assisted a family member qualify for a FHA loan as a co-signer on the loan and then applies for a FHA mortgage for his own residence.
Epro, SFR, CDPE, CIAS
Keller Williams Realty, The Market Place 1
1333 N. Buffalo Dr. #270
Las Vegas, NV 89128
The information above sounds like a scheme to beat the system and it won't work.
Your deal will be put under a micro scope by any underwriter so don't be mislead by believe it can be done if your and wife are still married and in good terms, if you can prove anything to the contrary I would get pre-approved before going out to see homes.
Certified Expert Negotiator, Realtor
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The Batchelor Group
I suggest you contact a local bank or mortgage broker to get full details of what FHA will or will not accept.
Upon reading your question, a question of my own comes to mind.
I believe FHA requires the home to be your primary residence and not a rental property or second home. Since you already have one FHA, a second might not be possible if my info is correct. Again check with a bank or broker who handles FHA loans.
Yes she can still get an FHA loan, assuming she qualifies on her own. However, FHA will still run your credit. The always run the husband and wifes credit.