FHA does not object to borrowers obtaining multiple FHA-insured mortgages in the following situations:
Non-occupying coborrower/ cosigner
A borrower may be qualified for an FHA-insured mortgage on
his/her own principal residence even if he/she is a non-occupying
coborrower with a joint interest in a property being purchased by
other family members as their principal residence with an FHAinsured mortgage.
A borrower may be eligible to obtain another FHA-insured
mortgage without being required to sell an existing property
covered by an FHA-insured mortgage if the borrower is
â€¢ relocating, and
â€¢ establishing residency in an area outside reasonable commuting
distance from his/her current principal residence.
If the borrower subsequently returns to the area where he/she owns
a property with an FHA-insured mortgage, he/she is not required to
re-establish primary residency in that property in order to be
eligible for another FHA-insured mortgage.
Note: The relocation need not be employer-mandated to qualify
for this exception.
Increase in family size
A borrower may be eligible for another home with an FHA-insured
mortgage if the number of his/her legal dependents increases to the
point that the present house no longer meets the familyâ€™s needs.
The borrower must provide satisfactory evidence
â€¢ of the increase in dependents and the propertyâ€™s failure to meet
family needs, and
â€¢ that the Loan-To-Value (LTV) ratio equals 75% or less, based on
the outstanding mortgage balance and a current appraisal. If not,
the borrower must pay the loan down to 75% LTV or less.
Note: A current residential appraisal must be used to determine
LTV compliance. Tax assessments and market analyses by real
estate brokers are not acceptable proof of LTV compliance.
Vacating a jointly owned
A borrower may be eligible for another FHA-insured mortgage if
he/she is vacating a residence that will remain occupied by a
Example: A couple is divorcing and the vacating ex-spouse will
purchase a new home
FHA loans are for first time buyers. If you own a home now that you purchased using FHA financing, you will not be able to get an FHA loan to purchase a replacement home upon the sale of your current home.
You can be a first time buye more than once...you would have to sale your current home and not own a home for three years,in order to be considered a first time buyer again.
Best of luck to you.
Kawain Payne, Realtor
As long as your FHA loan is with a primary residence this is non - issue.
Please call my cell direct @ (949) 212-4578 if you need further assistance.
Castle & Cooke Mortgage
Cell: (949) 212-4578