Are there any problems with refinancing a loan on an investment property, while trying to secure a new loan on a different property at the same time?

Asked by Ugaskidawg, 31201 Mon Feb 6, 2012

Last summer we moved from Florida and now live in Georgia. Because we could not sell our home for a decent price, we decided to rent it out and not take the hit financially. We secured renters, which is good, but we are now looking into refinancing that loan. We are looking at an FHA streamline loan and have already received estimates from two banks (understanding that our PMI is going to go up).

We are now in the process of looking for homes in our new area and have rented since we moved. We will need to get another loan and was curious if trying to refi and secure a new mortgage at the same time was feasible. We have good credit (both in the high 700s) and want to make sure that by refi'ing our old loan, it doesn't mess us up with trying to get a new loan. Any advice is greatly appreciated.

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Ugaskidawg’s answer
Ugaskidawg, Home Owner, 31201
Wed Feb 8, 2012
Thank you everyone for your insight. The new home mortgager will be kept in the loop of the refinance every step of the way, because we are not interested in keeping anything from anybody. We just want lower our payments and get whats best for us in the long run.

Thanks again!
0 votes
yolk290, Home Buyer, New York, NY
Thu May 23, 2013
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0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Tue Feb 7, 2012
Yes, there definitely could be an issue. If you are using the same mortgage company for both mortgages, then everything should be fine. If you are not, you must disclose both mortgages to each company for it to be ok. Not disclosing a mortgage in process to another company would be viewed as mortgage fraud.

As long as you are not under contract on a new home prior to the closing of the refinance, that one should be ok since there is not an active loan application. For the purchase of a new home, your closing paperwork from the refinance will be needed.

With the FL property is now an investment property, it will be treated a little different than if you live in it. Since you have relocated from GA to FL, you should be able to get another FHA mortgage with 3.5% down.

Please let me know if you have any questions.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference:  http://www.rodneymason.com
0 votes
Tim Brown, Mortgage Broker Or Lender, Alpharetta, GA
Mon Feb 6, 2012
Ugaskidawg,

OK so you are a UGA fan. That is a good thing. I am thinking you may even have a bulldog as a pet as well.

Anyway, the short answer to your very good question is that yes you can complete financing of two separate properties simultaneously without a problem. Since the assumption on getting a streamline done is that it will lower your payment, this will actually improve your ability to qualify for the home in GA.

My only recommendation is that it may make sense to do both loans with the same bank so there is full disclosure as to what is going on with both loans.

Welcome back to the great state of Georgia! Good luck with your home search. If you need a top shelf agent, I would be happy to recommend someone to you.

Best regards,


Timothy Brown
LPO Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
tbrown@getevolved.com
678.468.5626 x110 | fax 678.935.1156 | cell 678.467.9959
NMLS#: 168281
0 votes
Tony Lacy-Th…, Mortgage Broker Or Lender, San Jose, CA
Mon Feb 6, 2012
This should not cause you any problems, apart from twice the paperwork! Just bear in mind that if you're looking for another FHA loan, although you can have multiple FHA loans, only one of them can be at more than 75% LTV. And check that you are OK on closing costs for both, especially if you are putting taxes and insurance into escrow.
Web Reference:  http://svmortgageguy.com
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