jq26 Posted February 6, 2009 Report Share Posted February 6, 2009 Can someone hold more than one FHA loan at a time? Let's say, hypothetically of course, someone bought a home FHA in early 2007. That person has paid substantially more than minimum payments but does not have 20% equity quite yet. Then that same person wants to buy a primary residence in early 2010 but not sell the first home. Is this person eligible for an FHA loan on the 2010 purchase? Link to comment Share on other sites More sharing options...
marissart Posted February 7, 2009 Report Share Posted February 7, 2009 I asked this same question of my mortgage guy. He said that you can only have one FHA loan at a time. Link to comment Share on other sites More sharing options...
amortgageman Posted February 7, 2009 Report Share Posted February 7, 2009 Hypothetically, under certain circumstances, you may have more thaan one FHA mortgage.Realistically, the first mortgage may be no more than 75% loan to value, by appraisal.http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4155.1/41551c1HSGH.pdf Link to comment Share on other sites More sharing options...
jq26 Posted February 7, 2009 Author Report Share Posted February 7, 2009 Excellent link. Thanks for the reply. Hmmmm. This one could be tough. I suppose we'd be forced to go conventional. Not sure what ltv I am at, but it can't be 75%. Probably worth $210k and I owe $185. But the total rents are now up to $1605/month & will rise to $1665/month in August....if an appraisal is based on cash flow and not on brick and mortar I suppose it may be worth more. We could probably squeeze out $40k for a down payment on a conventional. If we bought a home worth $400k (10% down), are we looking at PMI? Or is the lack of down payment built into a higher rate? Or worse, both? Wife has 800+ ficos, mine are in the 700-750 area (with obvious blemishes from 2004). Man this housing downturn is a bad one. Its so hard to build equity. When you pay down the mortgage balance, the value of the home chases you downward. Just a few years back, people built equity making minimum payments in IO loans. The tables have turned! Link to comment Share on other sites More sharing options...
Denita Posted February 7, 2009 Report Share Posted February 7, 2009 Usually the rental rates are only one componet of the appraisal - and in SFR's the appraisal still leans toward comparable sales - as opposed to rental income. BTW, your rental income is reduced 25% for vacancy and collection (its for formula they use even if you have a paying tenant in the property for years without either a vacancy or collection issue!).On your purchase, typically you will have to pay MI if you are 90% LTV, but you can avoid MI if you do an 80%-10%-10% (10% dp and 10% seller held second + 80% first). The seller held second's are becoming more popular today due to the current state of the housing market. It is just finding a seller that understands the benefits to a seller-held second. (You can overcome some of the issues by making the note a saleable. Generally to have a saleable note, the term has to be min 15 yrs with min par rate and at least 12 months seasoning). Note of caution: some lenders in certain areas consider the total CLTV when considering MI. Link to comment Share on other sites More sharing options...
jq26 Posted February 8, 2009 Author Report Share Posted February 8, 2009 Thanks. Great info. I am surprised the MI avoidance scheme of piggybacking loans is still viable. I thought that died with subprime...amazing. Link to comment Share on other sites More sharing options...
Denita Posted February 8, 2009 Report Share Posted February 8, 2009 Notice I said seller held second. I don't think you can 80%-10%-10% with an institutional investor in 2nd position, at least not in our area of FL. Link to comment Share on other sites More sharing options...
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