Tag Archives: current home

Can You Have Two FHA Loans ?

Lizzie asks…

If I move and rent out my home under a VA loan, can I buy a house at my new location with an FHA loan?

I purchased a home in summer 2010 using a VA home loan. I expect to be PCS’d (Permanent Change of Station) in 2013. Due to the market, I doubt I can sell my home after only 3 years, but would still like to own my home at my next duty station. I would like to rent our current home after we leave. Because we are just starting out I won’t be able to build up my savings to afford 20% down, so I have been looking at my options. Can I purchase my next home using the FHA program and not have the VA or the FHA people sending me letters?
My credit is currently around 760.

We would have time to put renters in our house before purchasing another. And either way, we will effectively have 2-payments, whether we are renting at our new location or purchasing at our new location. I dont see being able to even break even on our current home yet and therefore we cannot sell it before moving.
Also, our household’s current income is around $7000 before taxes not including any rental income.
Thank you for the insight rswpbc.

admin answers:

Yes you can as long as you qualify with both payments. Since you have no history of being a landlord they may or may not let you offset the payment with rent, and if they do it will only be 75% of the rental income.  Will be the max you will be credited but more than likely even if  you are positive in the rent you will not be given enough credit to offset the mortgage payment.  If the other home does not have at least 30% equity you will need to qualify with both mortgage payments.

To correct other posts…only under very few conditions may you have 2 FHA loans at once. But for the most part the you can only have one FHA loan at a time.  FHA is 3.5% down, not 3%. Also keep in mind that this year the PMI factor is going up and from now on the PMI on a loan is for the life of the loan vs. only 5 years due the the FHA being in the red.

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