How do I keep an FHA loan and to buy a house that needs to be rehabilitated.

Too much info missing.. is this new home going to be your primary residence or an investment??.. If it's investment, then there is no conforming product out there that will allow you to add the repair costs to your loan.. If your looking to purchase a new primary residence, then you can use conventional HomeStyle Mortgage. They will allow you to include up to 50% of the homes repaired value in repair costs.. example: your home purchase price is $65K, but once repairs are completed, it's value will be $140K. You can add up to $70K for repairs into a first mortgage. This is a Fannie Mae loan product, but not every lender participates, so you will need to shop around. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Do not use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Generally speaking, you can not have two FHA loans at the same time. With that said, there are a few exceptions to that rule. Contact a local FHA approved mortgage broker in your area. Give them a full application, and see if your situation qualifies for one of the exceptions. Good Luck. www.streamline-refinance-mn.com

Yes your best solution is to refinance to a conventional loan on your current home. That would be better anyway to eliminate MI. The issue you are going to run into though is the new home looks like an investment property.

More information is needed

I would appear to be a good idea to refinance your current FHA into a conventional but do have a local mortgage banker or broker work up a proposed payment and compare to the costs involved. Even if you do this do be aware that FHA 203k loans (for property rehab) are for owner occupied properties only. It will be a tough sell to a mortgage underwriter that you are moving out of a $210k home into a cheaper one. Discuss this with your loan officer and best of luck to you.

Need more info

More info. required to advise if an exception would be issued by FHA to carry 2 FHA loans. Example: If you have a 1 bedroom condo with an FHA loan from 4 years ago..... but are now married with a child, that would be acceptable

Consider a private lender or partner.