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FHA Loans and Rented Properties

Your can keep your house purchased with an FHA loan and then rent it out and again borrow another FHA mortgage for a new house. But a borrower is only permitted to do this in certain circumstances if he is required to relocate far from a commuting distance for a new job or existing job.
Now the primary residence of the borrower of new FHA loan is the new house. But the situations under which this loan application is approved are limited as per the FHA rules.


You can take out a new FHA loan if the principal residence is evacuated in favor of another principal residence but this is not valid on existing rental properties revealed on the application that has been verified by tax returns as per as the Schedule E of form 1040. The mortgage on the evacuated property has been covered by FHA then you can qualify for a second FHA insured mortgage after undergoing an exemptions described in handbook HUD-4155.1.

Therefore, FHA loans are appropriate for private buyers but will not be a good idea to use for business purpose for purchasing and renting properties.
A homeowner can apply for a loan on a new house and can give the first house on rent only if an individual has a FHA loan with a loan-to-value ratio less than 75%.
You can qualify for a FHA loan after your rental property and income has been evaluated properly. You need to check the other FHA rules to understand what a borrower should do if he rents out a house and buy a new home. Make sure that your net rental income should be equal or more than the projected monthly mortgage payment.

The rules on the multi-unit property rental might vary depending on the situation of the borrower. Therefore, the FHA expect the borrowers to keep their rental units self sufficient.

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We can help you stop foreclosure with a loan modification in the following states:

If you need help understanding your option of taking advantage of the home loan modification process, the help is available to you everywhere. The process is quite tricky and it is highly recommended that you do indeed seek legal advice before signing on the dotted line, in order receive the most efficient and cost-effective modification to your mortgage payment.

Where do I get Advice
There is advice all over the web on how to receive a loan modification; some of this advice is quite helpful, while some is quite dreadful. There is also the opportunity to hire a professional service that will help you go through the paperwork and work with the lender to help you get all the benefits that you deserve, due to a hardship. Loan modification is a process that must be understood completely and thoroughly. This article can actually offer you an insight on the process of loan modification and tips that will better help you as a homeowner save your home from the risk of a foreclosure.

Loan Modification Advice
First and foremost, it is important to determine if you are eligible for a loan modification. This requires writing a letter of hardship explaining to the lender what exactly the reason is for your late payments and the fact that you are unable to pay your mortgage. Doing a loan modification on your own requires more than just advice. Becoming educated about the process is more important. This is perhaps a good reason to hire a professional loan modification company to take part in the process. They will handle everything for you, while educating you in the progression. There is a fee charged for hiring these companies, but in turn your mortgage payment can be lowered quite a bit and professionals can even find things in your original loan papers that may prove that the lender may have broken the law during your original mortgage signing.

If you do choose to take the big leap of the loan modification process on your own, you must first contact the lender and they will lead you to the correct department, normally the loss mitigation department. You may not want to directly say that you are in the process foreclosure. We do not want the lender to think your situation is not worth their time before hearing you out. Always document anything relating to the loan modification process, every phone call and any other information you may receive during the process must be documented. Always discuss every option available with your lender, so that you may come up with the best alternative for you. It is true you will save money going directly through your lender and let’s face it, you are struggling already trying to make your payments, but professional assistance can help immensely.

No matter what direction you decide to take, loan modification will be what determines the amount of time you have in your home. If you are eligible you should act as soon as possible.



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