You can still do a 5% conventional (just a little more) or a Homepath loan on your new one even if those exceptions don't apply on FHA.
But both housing payments will have to factor into the debt to income ratio. If you have a renter, most lenders want 2 years of rental history before they will allow the rental to be included as income. The only exception is if the home is rented to a voucher holder for assisted housing/section 8.
FHA will only allow a borrower to have more than 1 FHA insured mortgage out at one under certain exceptions.
As long as you relocated outside of what is considered a reasonable commuting distance, you'll be eligible for a new FHA Mortgage under the following exception.
•Relocation: The home-buyer is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance. A properly executed lease agreement (i.e., a lease signed by the home-buyer and the lessee) of at least one year’s duration after the loan is closed is required. FHA recommends that underwriters also obtain evidence of the security deposit and/or evidence the first month’s rent was paid to the homeowner.
In order to use the rental income for qualifying, you'll have to show the collected rent on your tax returns.
Please feel free to contact me for more information or help. You can also find info on my FHA Mortgage website by clicking the link below.
Senior Mortgage Banker
Peoples Bank & Trust
There are some financing programs that are not only for first time home buyers. They all have specific qualifications for income and some times also the location of the home that you wish to purchase. The best way to determine whether or not you will qualifiy for FHA or another type of financing program is to talk with a lender.
Here are a couple of lenders who I know will be able to answer your questions: David Usiak at Mortgage Services, III 309-664-7029 or Mark Seyller at Busey Bank 309-834-1026.
Have you thought about selling the home that you have been renting? I would be happy to do a market analysis for you to determine its current value. Please give me a call at 309-262-6210 or email BarbWoods1@live.com to set a time to meet with you - no charge and no obligation :)
Keller Williams Realty
You would need to speak with a lender who can answer all your questions after looking at your individual situation. A knowledgeable lender will know exactly what you need and will work to find the loan product that is right for you. In Bloomington there are several good lender options. One is Inlanta Mortgage 309-664-4400 (Rebecca is great there and can answer your questions over the phone). Another is Jackie Jackson at PNC 309-530-3941. Beyond those two there are many others in town that will be able to help. I also suggest that you ask your friends and co-workers who they used and what their experience was. Hope this helps and best of luck!