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Company Loan Type APR Est. Pmt.

Second Home as Primary

Posted on: 07th Feb, 2011 07:33 pm
Hello,
I own a home in Texas with a sub prime loan but relocated to Oklahoma for my job. I could not sell my house in Texas so I rented it to a couple with a signed lease. I currently rent a home in OK and my landlords have divorced and want us to buy the house for what they owe. We checked to assume but they have a native american loan and we do not meet the requirements. I would like to buy with FHA, have a mid 700"s score and make very good money so I am not worried about the debt to income ratio but am worried about the precent they will allow me to finance on purchase. Their application states second home finances at 80%. Is this correct even if it will be my primary residence? thanks
Hi seagulldk!

Welcome to forums!

Normally FHA loans are available at a down payment of 3.5% - 5%. However, as this is your second home, the lender may ask you to provide a down payment of 20% and he will offer you a mortgage for the rest of 80%.

Feel free to ask if you've further queries.

Sussane
Posted on: 08th Feb, 2011 12:05 am
This is your primary home in Oklahoma.

Is the mortgage on the property in Texas an FHA mortgage?
Posted on: 08th Feb, 2011 07:22 am
Thanks for the response. My home in Texas is not an FHA, it is a sub prime loan.
Posted on: 08th Feb, 2011 09:20 am
As long as you qualify carrying both mortgages, the minimum down payment for FHA mortgages is 3.50% and you would be eligible for that low down payment.

The maximum FHA mortgage is probably $271,050 in all counties in Oklahoma. Hopefully, your purchase price is lower than that so you can do the FHA mortgage with the minimum down payment.
Posted on: 08th Feb, 2011 09:30 am
Awesome, thanks for the advice. I will kepp you updated if any issues surface.
Thanks
Posted on: 08th Feb, 2011 09:46 am
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