FHA Mortgage for MULTIPLE MORTGAGES, FHA for more than one home
Posted on Sunday, February 28th, 2010 at 7:38 am
FHA Mortgage for MULTIPLE MORTGAGES
FHA will not insure more than one high LTV mortgage for a borrower except in thefollowing cases:
Minimal Down Payment and Closing costs.
- Down payment less than 3% of Sales Price Gifts are allowed
- Seller can credit up to 6% of sales price towards closing and prepaid costs.
- 100% Financing available
- No reserves required.
- FHA regulated closing costs.
Easier Credit Qualifying Guidelines such as:
-
- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase 1 year after a Bankruptcy.
- FHA will allow a home purchase 2 years after a Foreclosure.
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MULTIPLE MORTGAGES
FHA will not insure more than one high LTV mortgage for a borrower except in the
following cases:
-Relocations-if the mortgage applicant is relocating and re-establishing residency in another area not within reasonable commuting distance of the current principal residence, he or she may keep the property covered by the previous FHA insured mortgage as a rental. File must contain satisfactory documentation regarding the reasonability of the commute distance/time.
-Increase in family size-if the number of dependents has increased to the point where the present house no longer meets the family=s needs, the borrower may be permitted to obtain another home with a FHA insured mortgage. The borrower must provide evidence of the increased family size, evidence of how the property no longer meets the family=s needs, and must pay down the outstanding mortgage balance of 75% LTV, exclusive of financed MIP.
-Vacating a jointly owned property-If the borrower is vacating a residence that will remain occupied by a co-mortgage, the individual vacating the property is permitted to obtain another FHA insured mortgage. Acceptable situations include those following a divorce where the vacating ex-spouse will be purchasing a new home, or where one of the co-mortgagers will vacate the existing property and is getting married.
-Non-occupying co-borrowers are eligible for purchase transactions and may have a joint interest in the subject property as well as his or her current principal residence, even if the current principal residence is already secured by an FHAinsured mortgage. The maximum LTV is 75% unless the Borrowers are related by blood or can evidence a family-type, long standing and substantial relationship not arising out of the loans transaction.