Home Buying in 46219>Question Details

Sharron, Home Buyer in Indianapolis, IN

do you have to have 25% equity in a property to qualify for a second FHA loan or can you qualify with sufficient income to pay both mortgages?

Asked by Sharron, Indianapolis, IN Fri Nov 12, 2010

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Yes. Anna is correct- you can only have 1 FHA mortgage at a time, however if you sell property 1, you can purchase property 2 with an FHA mortgage- ie you can have multiple FHA mortgages throughout your life. Are you looking to keep the house that you have the first FHA mortgage on as an investment property? This is allowable, assuming you didn't use Indiana Housing for the initial loan as they often have stipulations about not using the property as a rental. There are also low-downpayment conventional loans available AND some lenders are allowing a "buy-out" of the PMI- meaning a lump sum can be payed by the SELLER (or buyer, depending on how negotiations go) at the time of loan closing so you would "save" a decent amount of money each month without having 20% equity in the property. For more information on that program, please contact Matt Davis at MetLife Home Loans- 317-595-2288, or call me and I can get Matt in contact with you!
0 votes Thank Flag Link Wed Dec 1, 2010
FHA only allows one loan at a time--for additional information, consult with any qualified loan officer(s), depending on your situation, maybe other suitable options can be found--then go from there.
0 votes Thank Flag Link Fri Nov 12, 2010
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