FHA Mortgage Streamline
After no success at trying to sell my home, I decided to rent it, but I wanted to combine my 1st and 2nd mortgages ($1600 tax and ins) in an effort to lower my payments, which would allow me to rent at a reasonable rate. Much to my surprise my FHA appraisal came in almost 50K less than my appraisal one year ago. I'm stunned and I don't know how a house with a brand new 30K upgraded kitchen and 1/2 bath, is appraised almost lowest sales price in my subdivision (all foreclosures were used in comps. I wish I could appeal. It can't be right). Bottom line...I did not qualify. Now I'm looking to streamline my 4.75 FHA to a lower rate. The medium rental for a house in my area is 1350. Also if I rent my home, would I qualify for another FHA mortgage. by collee_271_335 from Denver, Colorado. Nov 3rd 2011
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Sorry, but the answer is probably not. FHA requires that the borrower be living in the subject property as their primary residence. If you are renting it out, it no longer is your primary. That said, if you have not yet purchased another home, and you move bank in, it becomes your primary residence again and you could qualify for a streamline. That would rquire the current second lien holder to agree to subordinate to the new FHA loan. As to your second question, you are only allowed one FHA mortgage at a time. There are some rare exceptions, but generally that is for people who are job transferred accross the country, etc.
Ron Pippin (RonPippin)
#26 ranked lender in Utah - 158 contributions
Question 1 - Maybe. Question 2 - Yes, you CAN have two FHA loans. Appraisals are not an exact science, so you can obtain another appraisal and possibly get a higher value but you will have the expense of a second appraisal. If you know a Real Estate agent ask him/her to help you obtain comparables. YOu amy find that al that are aviable are short sales. Or you may find comps that the appraiser missed. Now, about that FHA loan. FHA only wants owner occupied loans. However, they do make exceptions (I have helped many people do this). Those exeptions are 1- Divorce. 2- Relocating. 3 - Change in family size. 4 - Rental. This last one is not automatic. FHA will look at how long you have lived in the home. Do you have a rental agreement and do you have 6 to 12 months payments in reserve (just in case). So, YES, it is possible to have 2 FHA loans.
James Barath (JamesBarath)
#9 ranked lender in Indiana - 352 contributions
Converting a standard forward FHA mortgage application to a streamline FHA mortgage application would generally not be an issue. However, since you already had an FHA appraisal completed you may have to wait up to 6 months to reapply. This would be necessary if your lender logged the FHA appraisal to HUD.
Nic Netherton (ColoradoLender)
#15 ranked lender in Colorado - 57 contributions
Collee- It sounds like you have a multitude of issues to deal with here so you would be best advised to set up an appointment to speak to a local Colorado mortgage lender to review your entire situation and evaluate which options would be in your best interest to pursue. After a brief consultation with an inteligent loan officer your path should appear more clearly.www.nicnethertonloans.com
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