No longer living in FHA purchased property, What to do now
Hello all
I'm new here and had a question regarding a home i purchased in 2011. I am extremely new to real estate and while I have been trying to find an answer to this through searching, I thought I might get a better result by asking. Please forgive me if this has been covered before or is a stupid question.
The home was financed with an FHA 203k loan closed in august 2011. I purchased the home and lived there until I got married in September 2012. Instead of selling the home, I have had family living there and paying the mortgage on it since. The loan is under my mothers and my name.
My wife and I are now looking to purchase a duplex and would also like to apply for an fha loan. I know that when i apply for a pre approval, it will show as if I am still obligated to pay for the home that is being "rented out". My question is, what is the best option at this point? Should we refinance and leave it only under my mothers name? Can that even be done? (she is willing to and it was actually her idea)
I did not invest anything out of pocket in this home. The down payment was a gift from my parents, all i paid was the monthly mortgage payment. I dont really have a problem with losing anything on this house, I just want to make the best case for getting approved for a new loan.
Any help and suggestions are welcomed.
Thanks