Can I rent my current home and use the income to qualify for a new home using FHA? Maybe.

 

1.) Relocations: The homebuyer is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance. A properly executed lease agreement (i.e., a lease signed by the homebuyer and the lessee) of at least one year s duration after the loan is closed is required. FHA recommends that underwriters also obtain evidence of the security deposit and/or evidence the first month s rent was paid to the homeowner.

 

2.) Sufficient Equity in Vacated Property: The homebuyer has a loan-to-value ratio of 75 percent or less, as determined by either a current (no more than six months old) residential appraisal or by comparing the unpaid principal balance to the original sales price of the property. The appraisal may be an exterior-only appraisal.

 

 

 

 

Happy Selling!
Jerry Alexander
Underwriter
Gateway Mortgage Group
1255
W. 15th Street| Ste. 540| Plano, TX 75075
972-908-3390 ext. 132

jerry.alexander@gmos.us
2/19/2010
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