Owns a single-family house under FHA, what chances do I have in buying a multi-family with low down payment?

Asked by vdbpcl, Tonawanda, NY Fri May 24, 2013

I currently own a house in Amherst, NY 14221. It's a single-family house. Due to personal issues (marriage and stuff), I decided to rent the house out. It is under FHA and I do not have much equity in there since we only lived there for a little over 2 years.

I prefer not to go back to renting an apartment again. So, I'm thinking of getting a multi-family house in Kenmore Area. It is less expensive than that house in Amherst. I talked to a loan officer and this are the pieces of information I gathered:

- I cannot get another FHA, since I already have one. But I COULD get out of FHA so I can get a new FHA loan for the second house I'm thinking of getting.
- One option to get out of FHA is to refinance the first house, but if I do that, it has to be refinanced as non-owner occupied since I am already renting it. This requires a much higher equity, if I understand it right. And I do not have much equity on the house.

Do I have other options?

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Answers

3
Timothy Keane…, Agent, Williamsville, NY
Thu May 30, 2013
Hunt ERA has a great mortgage department that can help you with this issue and I would be glad to help you with other options and assisting you with this whole process my contact info is below


Timothy Keane Topor
Licensed Real Estate Salesperson

Hunt Real Estate ERA
8780 Sheridan Drive
Williamsville, NY 14221
Cell:716-480-7008
E-mail: timothy.topor@huntrealestate.com
0 votes
Dan Woods, Agent, Williamsville, NY
Sat May 25, 2013
The short answer is you need to contact and ask a mortgage representative to find out for sure. Their decision will be based on a host of factors to include your income, expenses, assets, etc. I would suggest contacting a handful of various providers to get a good sense of rates and viability. To make it less frustrating for you and to help streamline the process I would have as much financial documentation ready to provide prior to making your calls. Anything that outlines income income/expenses, etc. I would also encourage you to seek legal/tax representation from the appropriate experts when the time comes.
0 votes
Jung S. Ki,, , New York
Fri May 24, 2013
You need to go back to the loan officer and ask
0 votes
She said those are the options she knows. I'm posting the question here in case other people have other ideas apart from the ones the loan officer told me.

If I find out there are truly no options for me, so be it. Just want to make sure that the loan officer isn't overlooking a "chance" for me to get the second house.
Flag Fri May 24, 2013
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