Sub2 on an FHA loan in Pueblo, CO

Member since 2024 · 1 post · 0 votes

I have a deal all signed to buy a home sub2 in Pueblo Colorado, but I realized the mortgage is a FHA loan. The title company I have used in the past says they won't work with that, and that other title companies won't either. Does anyone have a title company they've used or an attorney in Pueblo that would be a good solution here?

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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
2y
Can't do sub2 on FHA with a title company that knows the repercussions. They can get blackballed forever from closing FHA. I've posted about this previously and provided copy of the guidance.
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Joshua Kim reid
Investor · Winston-Salem, NC · Member since 2021 · 40 posts · 12 votes
2y
I don't have a great understanding of sub2. However, if you are purchasing the property subject to the loan, which is an FHA loan used for primary residency, I don't see a title company working with that unless the loan is paid off prior to any improvments made to the property. At that point it would be a seller financed deal, unless I have everything backwards.
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