Please advise all my smart Georgia mortgage lenders

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Please advise all my smart Georgia mortgage lenders

Jamaal Rogers
Investor · Atlanta, GA · Member since 2015 · 25 posts · 1 vote

Hello BP,

I purchased a duplex using an FHA loan. I would like to refinance this loan and convert it to a conventional one. Once this loan has been made conventional am I allowed to buy another house using an FHA loan. I own three houses at this time.

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Stephanie MedellinBusiness Member
Mortgage Broker · CA · Member since 2014 · 1k+ posts · 642 votes
10y

@Jamaal Rogers

FHA loans are for owner occupants only, so there would have to be a strong reason for you to move from where you're living now to the new home. An underwriter generally wants to see that you're moving closer to work or upgrading your standard of living by moving to a nicer/larger home, or moving from a duplex into a single family home. If you're moving to a smaller house or further away from work, it just doesn't make as much sense from an underwriting perspective, and they may not believe that you're actually going to move into the home.

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Stephanie Medellin, Loan Factory58 Reviews
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  • Shaun Weekes
    Loan Officer / Processor / Life & Health Agent · Rancho Cucamonga, CA · Member since 2014 · 1k+ posts · 757 votes
    10y

    @Jamaal Rogers

    Yes.

    But if you're moving into a smaller home or adding more miles to your commute to work this might hinder your loan approval.

    Make sure that you speak with a seasoned Loan Officer or Broker and have them go over your entire scenario.  

    This will give you a lot less headaches in the future.  

    I hope this helps.

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  • Jamaal Rogers
    OP
    Investor · Atlanta, GA · Member since 2015 · 25 posts · 1 vote
    10y

    Thanks @Shaun Weeks

    Out of curiosity why would moving into a smaller home or adding miles to my commute hinder the loan approval?  

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  • Stephanie MedellinBusiness Member
    Mortgage Broker · CA · Member since 2014 · 1k+ posts · 642 votes
    10y

    @Jamaal Rogers

    FHA loans are for owner occupants only, so there would have to be a strong reason for you to move from where you're living now to the new home. An underwriter generally wants to see that you're moving closer to work or upgrading your standard of living by moving to a nicer/larger home, or moving from a duplex into a single family home. If you're moving to a smaller house or further away from work, it just doesn't make as much sense from an underwriting perspective, and they may not believe that you're actually going to move into the home.

    [email protected]
    Stephanie Medellin, Loan Factory58 Reviews
    WebsiteView Page
    1Reply
  • Michael Williams
    Investor · Palmetto, GA · Member since 2014 · 190 posts · 77 votes
    10y
    Originally posted by @Stephanie Medellin:

    @Jamaal Rogers

    FHA loans are for owner occupants only, so there would have to be a strong reason for you to move from where you're living now to the new home. An underwriter generally wants to see that you're moving closer to work or upgrading your standard of living by moving to a nicer/larger home, or moving from a duplex into a single family home. If you're moving to a smaller house or further away from work, it just doesn't make as much sense from an underwriting perspective, and they may not believe that you're actually going to move into the home.

     That's what I love about BP, you can learn a lot just from reading other peoples post. Jamaal and I thank you Stephanie. 

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  • Jamaal Rogers
    OP
    Investor · Atlanta, GA · Member since 2015 · 25 posts · 1 vote
    10y

    @Stephanie Irto, @Shaun Weeks

    Thank you!!

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  • Scot Howat
    Investor · Hoffman Estates, IL · Member since 2014 · 434 posts · 185 votes
    10y

    Why do you want a FHA loan? I'm assuming because of the low down payment of 3.5% right?

    Just get a conventional loan at 97%, it's a Fannie Mae product. There's lenders out there that will do it. And there's a whole lot less red tape to getting one vs. FHA, and no up front MIP. Just regular MI.

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  • Stephanie MedellinBusiness Member
    Mortgage Broker · CA · Member since 2014 · 1k+ posts · 642 votes
    10y

    @Scot Howat  For the Fannie Mae program on purchase transactions at least one borrower must be a first time homebuyer to put 3% down. Otherwise you can do 5% down.

    Their HomeReady product geared toward lower and moderate income individuals also allows 3% down.  While that one is not limited to first time homebuyers, the occupant borrower(s) may not own any other residential property at the time of loan closing.  So if @Jamaal Rogers owns 3 houses, he wouldn't be able to take advantage of that option.

    [email protected]
    Stephanie Medellin, Loan Factory58 Reviews
    WebsiteView Page
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