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FHA Home Loans Relocating to Oregon And Washington
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FHA Home Loans Relocating To Oregon And Washington | Home Loan | Home Loan Programs 2016 | Best Home Loans 2016
It’s no secret that FHA Home Loans are a hot item. In addition to a low required down payment, FHA loans are more forgiving when it comes to your credit.But did you know that FHA Home Loan Programs are great for relocating to another state? Relocating Here’s a real-life situation that illustrates the advantages of relocating with an FHA Home Loans Relocating to Oregon And Washington. The problem is that you own a home in California, you have a mortgage against it, and the Real Estate Home Loan market is soft. You can’t sell your home for what you want, so you decide that you need to rent your home in California.This is sometimes referred to as “Conversion of Primary Residence”. So let’s assume you have good credit, you want to buy a home in Oregon or Washington, and you have 20% to put down on your purchase.
You would naturally assume that since you have a big down payment, your best option is a conventional loan. You might be wrong, and I will explain why.Conventional Loans, Rental Income & Home Equity Loans.The problem comes when you start trying to offset the payment on the house in California in terms of your debt-to-income ratio.See, when you own a rental property, and you are trying to qualify for another home loan, underwriting Home Loan Guidelines state that you can only use 75% of the rental income. It is assumed the other 25% goes towards things like maintenance. It looks like this (gross rent) x (.75) - (total mortgage payment) = income or loss. So, if you have a mortgage payment on your home in California, then 75% of the rent needs to be greater than the your mortgage payment plus taxes and insurance. If that number is greater, then that is added to your income. If it is less, then it is subtracted from your income.
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However, it goes deeper than that. In order to be able to use this rental income in the scenario we’re discussing, all of the following have to take place 30% net equity in the your existing property (in California) must be documented with an HVCC compliant appraisal Rental income needs to be documented with a fully executed agreement between you and the renters, and that rental lease agreement must be for a minimum of 12 months.A copy of security deposit receipt AND proof of a corresponding deposit into your bank account must be verifiedIf you can’t meet those requirements, you have to qualify with both mortgage payments, and you must have 6 months of reserve FHA Home Loan Financing payments for both properties in the bank.
But to me, what really stings is the 30% equity requirement.If you had 30% equity, maybe you could sell your house! Relocating with FHAThe big difference is that FHA Home Loans Equity At Low Interest do not have this 30% equity requirement. All you need is a fully excecuted 12 month lease agreement and the proof of security deposit.It’s important to remember that FHA defines relocation as moving with a different employer, or being transferred by the same employer, to a new location that isn’t easily commutable by local standards. That is the case here, where you are renting your existing house in California and Buying Home Loan in Oregon or Washington.If you are just “relocating” across town, then FHA requires that you have 75% equity in the existing property.So, when you combine this relocation advantage with the other “pros” of the FHA Home Loan Process, it may be worth considering if you need to relocate.Need help finding out what loan program works for your situation?
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