Iam a single woman with good income and crdit. i have an FHA loan on my townhouse in savannah ga. Grea

Asked by Diane Dean, Savannah, GA Mon Feb 16, 2009

location ,poolside, I am going to lease out until ecnomy is better, .My family has outgrown the townhouse and I want to know can I apply for another FHA or do I have to go a diiferent route?

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Other/Just L…, , Fleming Fitch Grant, Holly Hill, FL
Tue Feb 17, 2009
Lending answer:

FHA has several exceptions to the "one loan at a time" rule. If you meet one or more of the exceptions below, you could purchase a new primary residence with an FHA insured mortgage while retaining the existing FHA insured loan on your current primary residence.

INCREASE IN FAMILY SIZE: If your family has grown (ie new children) and you need a larger home, you may keep your existing residence as a rental property without refinancing the existing FHA mortage to a non-FHA insured mortgage and qualify for a second FHA insured mortgage for a new, larger primary residence. NOTE: Depending on the amount of equity in your current home, you may be required to show enough income to carry both mortgages without the offsetting rental income from your old residence.

NON-OCCUPANT CO-BORROWER: If you co-signed an FHA insured mortgage as a non-occupying co-borrower (eg parent co-signed for child's primary residence to meet qualifying income requirements for child), you may qualify for an FHA insured mortgage for your own primary residence without being required to refinance your child's FHA insured mortgage.

RELOCATION: If you are being relocated, you may qualify for a new FHA Insured mortgage to purchase a primary residence because of employer mandated relocation (or because you decide to relocate yourself) without having to refinance or pay off your existing FHA insured mortgage. Again, you may be required to show sufficeint income for both mortgages regardless of rental income from your old residence if you don't have sufficeint equity in the old residence.

COMMUTE: If you decide to purchase a new residence closer to your existing employer to lessen your commute time, you may qualfy for a new FHA insured mortgage without having to pay off or refinance your existing FHA insured mortgage. Rules for sufficeint income to carry both FHA insured mortgages apply as above. FHA does not set a minimum distance to move under the COMMUTE exception, but the underwriter must determine that a benefit to reducing your commute exists. You probably would be required to show the new and old commute times (and the UW will verify by using Mapquest), mileage savings, and gas savings. Because of the UW's authority to agree or diasagree with your definition of a shorter commute time, this exception may require some shopping around among lenders.

Over the years I've closed loans for all of the above exceptions. It's tougher today than prior years (the shortest COMMUTE exception was just 15 miles... but in Jacksonville, Florida, there is a HUGE difference in commute times from one side of the St. Johns River to the other). Family Size and Non-occupying co-borrower are easy.

You best bet is to talk with a loan originator who works for a lender that funds a large number of FHA insured mortagages. You more likely to be handled by an FHA DE Underwriter. FHA DE underwriters have broad authority (not to mention expertise and certification) in underwriting FHA insured mortgages and granting the appropriate exceptions.
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Jinan Lamas…, Agent, avannah, GA
Tue May 12, 2009
It will depend on your income to debt ration and your credit score. Please contact me if you'd like more details.
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Hank Miller, Agent, Alpharetta, GA
Thu Feb 19, 2009
Deep is right, I just had a buyer that owns an income property in OH lock in a new home here and both are FHA. Get in touch with a good lender, I'm happy to tell you who we used.

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Marty S, , Irvine, CA
Tue Feb 17, 2009
You would either need to refinance the townhome to a conventional loan, sell it, or buy the new house with something besides an FHA loan. I would sit down with a mortgage broker and discuss your options.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
877-238-6324 FAX
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, ,
Mon Feb 16, 2009
You should look at all options especially for financing then make your decision. Have you had a really good cma done for your current location? Many of our neighborhoods are unfortunately upside down in price, especially if you just purchased within the last few years. You may want to still look at the option of selling if you can at least break even. You may not be aware, but you can purchase a home west of I95 with no money down. If that were to be an area that you'd consider, that would alleviate the need to gain money from the sale of your current townhome and possibly allow you to move on. I would be happy to help you in any way that I can. Let me know if I can suggest a good local lender or if I can put together a realistic market analysis to see if there is any possiblilty in selling. I can easily be reached at 912-655-2554 or robinsellssavannah@gmail.com

Robin Arrow
Rawls Realty
Web Reference:  http://www.robinarrow.com
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Lorie Gould, Agent, Duluth, GA
Mon Feb 16, 2009
If you are planning on staying within the area then you will need to go a different route for financing. FHA requires special circumstances such as a long distance move to approve a person for another FHA loan without closing the first.

Fannie Mae guidelines have changed significantly from years past so I would recommend that you speak with a lender prior to leasing your townhome. The guidelines have changed and your existing mortgage will count against your debt to income even if the townhome is rented. Secondly, you will need reserves for both properties. Last but not least, your townhome is now required to have 20% equity. Are there exceptions to the rule? Absolutely, which is why I strongly recommend that you speak with a qualified lender to assess your personal situation. I recommend Wells Fargo which is a nationwide lender. Please feel free to contact one of my favorites, Kathy Terry.

Kathy Terry
Home Mortgage Consultant
Wells Fargo Home Mortgage
770-497-6018 Direct
866-676-1044 Fax
404-285-3699 Cell
Remember I can do loans in all 50 states!

Best of Luck!

Lorie Gould
Keller Williams Realty Atlanta Partners
Web Reference:  http://www.HomesByLorie.com
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Robert Chome…, , San Diego, CA
Mon Feb 16, 2009
Hi Diane,

You can only have 1 FHA loan at a time. You can refinance into a conventional loan out of your current FHA loan. And then you will eligible for a new 3.5% down FHA loan on the new house you buy. Or you can go with a conventional loan on the new house. There are programs with 5% down conventional.
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