I bought a 4-unit in 2011 with an FHA loan. I just got engaged and we'll probably buy a SFH in the next 2 yrs. Will I be able to get another FHA?

Asked by Dn, Chicago, IL Tue Feb 21, 2012

loan? My fiance does not have a mortgage and his credit isn't great.

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14
Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Tue Feb 21, 2012
BEST ANSWER
You can not secure another FHA loan unless you are currently experiencing Hardship - or relocation.
I can help you look at your options with securing a conventional loan if you are interested. We have options with only 3% down
Sam Sharp
Senior Vice President of Mortgage Lending
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773 -290 - 0455
3 votes
Gregorio Den…, , San Diego, CA
Tue Feb 21, 2012
Exception situations in which FHA does not object to borrowers obtaining multiple FHA-insured mortgages.

------
Relocation:

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
• relocating, and
• 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 family’s needs. The borrower must provide satisfactory evidence

• of the increase in dependents and the property’s failure to meet
family needs, and
• 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 property:

A borrower may be eligible for another FHA-insured mortgage if he/she is vacating a residence that will remain occupied by a coborrower.

Example: A couple is divorcing and the vacating ex-spouse will
purchase a new home.
------------------------

Non-occupying coborrower:

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.


ALWAYS speak to a licensed loan officer regarding financing questions.
Web Reference:  http://FhaR.Net
3 votes
Rob Weber, Mortgage Broker Or Lender, Plainfield, IL
Mon Feb 27, 2012
Interesting responses so far here. With all due respect to Sam as I don't know him personally or have ever worked with him, I'd have to give the best answer to Gregorio here as his answer was the only inclusive, accurate one so far. Had he not posted the guidelines with those caveats, I'd have posted them myself. :)

Anyone reading this question in the future will think the 'best answer' is the correct one and unfortunately it's not, which is the main reason I even commented on this thread.

Future readers, please read the entire thread (as it sorts by most recent automatically) or pull up the guidelines on HUD's website (the "4155" is the HUD handbook) or contact a licensed loan officer for specifics.
Web Reference:  http://Robweber.com
1 vote
Gregorio Den…, , San Diego, CA
Tue Feb 21, 2012
I see you chose a "best answer"

Just a FYI, it may be best, but it's wrong. You may want to look at what I posted which are the actual guidelines for FHA mortgages.

And before I get jumped on, I am only saying this because I believe they asked this question with the intention of getting the correct answer, not the first answer. i don't care about best answers but I do care about facts.
1 vote
Riccardo War…, Agent, Bolingbrook, IL
Mon May 20, 2013
Unlikely. It is possible though. There are several factors that must be present and the lender (as well as FHA) are going to scrutinize you heavily.

Sean Cochran
Quality Mortgage Lending
http://www.qmlending.com
630-330-2229 cell
630-470-6830 office
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0 votes
..., , 60014
Fri May 17, 2013
I would advice this borrower to analyze his future needs, downpayment requirement and credit profile. If increase in family size is possible in 2 years, then the exception will apply and because property values are going up, and LTV at 75% might not be a problem. But considering that FHA mortgage insurance rates have gone up lately, a conventional loan with 3-5% down might be a better option since private MI is cheaper and will actually result in a lower payment. Since you have 2 years to prepare, you should consider working on improving your fiance's credit to get a better rate.
0 votes
George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Mon Feb 27, 2012
Great answer Mr. Denny!

By far the best articulated well thought out response. Because we have LO like Sam in the world who give out incorrect information, LOs like you and me are busy converting all the no's to closings. My pipeline is pretty full as I am sure yours is too. Keep up the good work!
Web Reference:  http://www.AFN-Loans.com
0 votes
Dn, Home Buyer, Chicago, IL
Wed Feb 22, 2012
Thanks for all of the help. I picked Sam's as the best because (assuming it's correct) it's the most helpful answer. And funny enough, my existing FHA loan was originated by GR.

Gregario, thanks for sending the FHA guidelines. I'd done some research and kept running into them but didn't think they helped me, which is what prompted me to post the question. It's good to know the other exemptions though, as the relocation one might eventually be true.
0 votes
Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Wed Feb 22, 2012
Sam, from experience Gregorio knows that sometimes people read questions on Trulia when the question asked is not exactly their question, and take the word as gospel. I have also found him always to give appropriate answers, and be very helpful.
Seeing as I personally don't do many FHA loans at all, I thought I knew the correct answer, which is Gregorio's, but didn't want to chime in because I was not sure. Giving a quick answer isn't always the right answer. One of the problems on Trulia is that you get an e-mail from them within a very short time from when you ask a question asking you to pick a "Best Answer", so you don't have all the correct answers before you do that. Clearly others have given incorrect answers as well.
Dn, there are 2 issues here also, the main one being that you are talking about 2 years from now, and guidelines change all the time, so what the correct answer is today may not be the case then. Also, this might be the kind of thing that is an underwriter's call. They can determine if your situation will fit into the increase in family size or relocation guideline. When you are ready, ask to have a loan officer speak to their underwriter about this. To accomplish this, you would probably be smart to contact a local mortgage banking company that underwrites its own FHA loans.
0 votes
Sean Lowry, , Chicago, IL
Wed Feb 22, 2012
NO.....only 1 FHA loan at a time.
0 votes
Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Tue Feb 21, 2012
Gregario - I am not going to jump on you - but please note - I Listed a quick and direct answer as it pertained to the question at hand -
I didnt just copy the FHA guidelines to list info that was not relevant - although I do support your answer as it is a great resource for those who are interested in all aspect of obtaining more than one FHA mortgage
Your answer does list specifics but they do not help Dn.
I do care about the right answer and I also care about answering things in an easily understood and pertinant manner
0 votes
MAYRA RUBIO, Mortgage Broker Or Lender, Lombard, IL
Tue Feb 21, 2012
Yes, you will be able to obtain another FHA loan. You would have to provide proof of your change in circumstance. If you need further assistance please feel free to contact me directly @ 708-699-9776.
0 votes
Matt Laricy, Agent, Chicago, IL
Tue Feb 21, 2012
I dont believe you can get an FHA but there are other options out there. I would speak with a lender. They would be your best resource. Let me know if you need a referral.
Web Reference:  http://AmericorpRe.com
0 votes
Bill J Delig…, Agent, Naperville, IL
Tue Feb 21, 2012
Try a conventional loan. You can get in with as little as 3%-5% down as long as credit/income are sufficient.
Web Reference:  http://www.BJDLOANS.com
0 votes
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