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Relocating but can't sell, FHA on new home?

We wish to relocate for professional and family reasons in the next 6 months or so. We're currently in AZ and underwater to the extent we can't afford to sell this house at this time. We intend to rent it out until hopefully a combination of equity and improved market conditions allow us to break even at least!We're moving to an area near family, where we want to put down roots. Though I know it makes sense to rent a while, I've visited and checked the market out frequently, and there seem to be some really affordable options if we can purchase, if we are renting out our present house, can we possibly go FHA for a new home when w relocate? What sort of credit score would we need?Thanks in advance for any help--K by Kriste_859_738 from Gilbert, Arizona. Oct 20th 2011 Reply


Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions

Buying a new home when unable to sell the existing home is very common in today's market. The generic quick answer is yes, but you will not be able to use any rental income on your existing home to qualify for the new home. You will need to be able to afford BOTH house payments. As for FHA, generically speaking, you can only have one FHA loan at a time. There are some rare exceptions to that rule. Contact a local LICENSED Loan Officer and let them review your personal situation for specific answers. Buying in MN or WI? Visit www.MortgagesUnlimited.biz

Oct 20th 2011
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William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

Well there's good news for you... FHA has insurance for a loan product for someone in your exact situation. If you short sell your current home, and you're selling it because of a relocation, and not taking advantage of the market, you've had zero late payments on the mortgage or ANY obligation for the last 12 months, then you can get approved for a new FHA mortgage. Contact a mortgage broker, not a bank, in the area you wish to move to and apply with him. He has a vast number of lenders he can choose from and can find the right loan for your particular scenario. I'm here local if you wish to talk... 480-287-5714... WilliamAcres.com

Oct 20th 2011
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Crestico Funding (CresticoFunding)
#316 ranked lender in California - 340 contributions

Kriste,There is a possibility of you being able to get a new FHA loan if you currently have an underwater property, however you must be able to qualify for your existing Mortgage and also the new purchase without using the rental income of your AZ property. it is a little more complicated than standard loans but it is doable? If you are moving to California, We are an approved FHA lender and can help you with your financing needs. Please feel free to call or email me if you have any more qustions.

Oct 20th 2011
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