Can I Have Multiple FHA Loans?

Qualifying For Multiple FHA Loans

The Federal Housing Administration has created FHA mortgage loans to make home ownership affordable to all Americans.  The FHA insured mortgage loan program is a wonderful vehicle for a first time home buyer or those home buyers who have had some prior credit problems have a chance in becoming howeowners again.  FHA insured mortgage loan guidelines are much more lenient that conventional loan programs.

FHA Insured Mortgage Loan Programs; Multiple FHA Loans

For those mortgage loans borrowers who have had a prior bankruptcy and/or foreclosure,  they may qualify for FHA insured mortgage loans as long as they haved passed their manadatory waiting periods.  There are a mandatory two year waiting period after a person’s bankruptcy discharge in order to qualify for a FHA insured loans.  However, the new HUD FHA Back to Work Extenuating Circumstances due to economic hardship on requires a one year waiting period after someone has filed bankruptcy or had a foreclosure.  There is a mandatory 3 year waiting period after the recorded date of a foreclosure to be able to qualify mortgage loan in general unless the home buyer qualifies for the one year waiting period after a deed in lieu of foreclosure, foreclossure, and/or short sale.

 Can A Borrower Have Multiple FHA Loans

A borrower may have multiple FHA loans only under the following circumstances:

1.. Borrower is relocating and establishing residency in an area outside reasonable commuting distance. In this case, the relocation is not required to be employment related.

2.  The borrower must provide evidence of the increase in number of dependents and the property’s failure to meet current needs.

3.  Borrower must have 25% equity in the current property as evidenced by an appraisal. Tax assessments and broker market analysis are not acceptable.

4.  Borrower is vacating a jointly owned home

5.  Borrower was or will be a non-occupying co-borrower with a joint interest in a property purchased by other family members as their primary residence.

Qualified investor entities are limited to a financial interest (this includes any type of ownership, regardless of the type of financing) in seven rental dwelling units, when the subject property is part of, adjacent to, or contiguous to, a property, subdivision or group of properties owned by the investor. The units that count toward this limitation include:

1.  Each dwelling unit in a two, three, and four family property, and

2.  The rental units in an owner-occupied two, three, or four unit property.

Gustan Cho NMLS ID # 873293

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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