This BLOG On Multiple FHA Loans At Same Time Mortgage Guidelines Was PUBLISHED On March 20th, 2019
Can you have Multiple FHA Loans At Same Time?
- The answer to having Multiple FHA Loans At Same Time is YES but under four different circumstances
- FHA Loans is one of the most popular loan programs in the United States
- HUD, the parent of FHA, created and launched FHA Loans to promote homeownership to first-time homebuyers and borrowers with less than perfect credit and higher debt to income ratios
On this blog, we will discuss on how borrowers can have multiple FHA Loans at same time.
Job Transfer And Distance To Travel
Borrowers can have Multiple FHA Loans At Same Time if they currently own a home but either got a job transfer or new job. The new job needs to be at least 100 miles or more than the location of the exiting home. A job relocation that is less than 100 miles will not qualify. They do not have to sell the exiting property and keep it as a rental. The new property will require 3.5% down payment and borrowers and the property needs to meet all HUD Guidelines. It does not need to be the same job or the same field of work. Borrowers who transfer from their current employer is fine. Also, if they find a different employer, that is allowed as well.
Upgrading To A Larger Home Due To Expansion Of Family
Homeowners with a current FHA Loan can have Multiple FHA Loans At Same Time if they are buying another home due to having a larger family. In order to qualify due to a larger family, the exiting home needs to have at least 25% equity. Borrowers who do not have 25% equity can pay down the mortgage balance without refinancing. Expanding family is very common in cases where a borrower may get married with a spouse with many children.
Co-Borrower Mortgage Guidelines
If you are a co-borrower on a FHA Loan and are leaving the property and the main borrower is keeping the home, you are eligible to qualify for a second FHA Loan without the main borrower refinancing. Both home loans will be used as liabilities and calculated on debt to income ratios. Borrowers who currently own a home with an FHA Loan can become a non-occupant co-borrower for a family member with another FHA Loan.
Home buyers who are looking for a direct lender with no overlays on FHA Loans can contact us at Gustan Cho Associates at Loan Cabin Inc. at 262-716-8151 or text us for faster response. Or email us at email@example.com. Gustan Cho Associates at Loan Cabin Inc. has zero overlays on FHA Loans and just go off HUD 4000.1 Guidelines. We are available 7 days a week, evenings, weekends, and holidays.