Posted on: 23rd Apr, 2010 09:18 am
We own one FHA home. We want to step up and purchase a larger one, but can't get another FHA unless this is sold or it's no longer and FHA loan. We can't sell it right now. In TX, we understand that we can't convert this to investment property because you have to have at least one primary to have an investment. In other words, if you only have one house, that house can't be investment. But, can we convert it to a Second Home?
Hi ponyboy,
In my opinion, it would be a better idea to contact the Texas Real Estate Commission and take their opinion in this regard. You can find their contact details in the given page:
http://www.trec.state.tx.us/agencyinfo/default.asp
Thanks
In my opinion, it would be a better idea to contact the Texas Real Estate Commission and take their opinion in this regard. You can find their contact details in the given page:
http://www.trec.state.tx.us/agencyinfo/default.asp
Thanks
Hi Ponyboy,
In order to convert your home you'd have to convert the mortgage, meaning you'd need to refinance from an FHA loan to a conventional loan.
You may also qualify for one of the few FHA exceptions that would allow you to have 2 FHA insured mortgages out at the same time. You can find the exceptions here:
"http://www.fhamortgagesdoneright.com/are-you-thinking-about-moving-up-and-renting-your-current-home-here-is-what-you-need-to-know/"
The main issue you're likely to run in to is can you qualify for the new mortgage with your current mortgage payment included in your debt to income ratio without including rental income.
Under the buy and bail guidelines, lenders will not accept a lease agreement unless you have an established history of receiving rent or 30% equity in the property. Under the FHA exceptions, these new guidelines may not apply if you qualify for one of the exceptions.
[Link deactivated as per forum rules. Thanks.]
In order to convert your home you'd have to convert the mortgage, meaning you'd need to refinance from an FHA loan to a conventional loan.
You may also qualify for one of the few FHA exceptions that would allow you to have 2 FHA insured mortgages out at the same time. You can find the exceptions here:
"http://www.fhamortgagesdoneright.com/are-you-thinking-about-moving-up-and-renting-your-current-home-here-is-what-you-need-to-know/"
The main issue you're likely to run in to is can you qualify for the new mortgage with your current mortgage payment included in your debt to income ratio without including rental income.
Under the buy and bail guidelines, lenders will not accept a lease agreement unless you have an established history of receiving rent or 30% equity in the property. Under the FHA exceptions, these new guidelines may not apply if you qualify for one of the exceptions.
[Link deactivated as per forum rules. Thanks.]