Immediate FHA underwriting rule change

Posted on Thursday, September 25th, 2008 at 12:32 pm.

The following information is from Patrick Collins of First Savings Mortgage Corporation:

Who is affected: Borrowers who own a home now and to rent out their old home to buy a new home

Change: Borrowers must qualify to carry BOTH mortgage loans (old home and new home) - i.e. - rental income CAN NOT be considered - UNLESS borrower is being relocated by his employer OR borrower has a documented 25% equity in the OLD home (appraisal probably needed on old home)

Effective: Immediately (Sept. 19th). If you received your FHA case number before then - you are OK.

Sorry for the short notice as we just received it from HUD. So now, Fannie Mae and FHA have restrictions in place for buyers attempting to rent their current residence and buy a new one. Look for Freddie Mac to make their change very soon. Buyers must act quickly if they wanting to have this option - the opportunity window shutting soon.

Please call me if you have any questions.

Patrick A. Collins
Vice President
703-564-1756 Phone
703-564-1786 Fax
703-282-5982 Mobile
pcollins@firstsavings.com

Direct Link to this FAQ: DROdio.com/faq/?p=419

Call Anytime: 1-800-705-2782

Contact Us

We'll respond in 15 minutes or less.

Search our knowledge base

Find Property Near You

A message from Daniel:

Buying A Home

All About Home Financing & Loans (51 Q&A blogs)
Wondering how the lending process works? Wondering if you should pay any 'points'? Jump in for the answers.
All the questions you were afraid to ask (108 Q&A blogs)
If you're a first-time home buyer, indulge yourself with answers to all the questions you were afraid to ask!
Client Testimonials (18 Q&A blogs)
Read some glowing Testimonials from clients who have used our services to buy a home!
Contract Questions (21 Q&A blogs)
Contracts can be scary things! But after you read through this section, you should be much more comfortable with the process, and we're always just a phone call away!
Learn About the Area (31 Q&A blogs)
Curious to know about certain areas? Find your answers here. This is especially useful if you are buying from out of town.
Negotiation Techniques (13 Q&A blogs)
One of the things that makes DROdio agents so special is our strong emphasis on negotiation. Many Realtors (especially the "weekend warriors") aren't too good at negotiating you a stellar deal. We'll reveal some of our secrets here. If you're a Realtor from competing company and you're reading this section, you should be ashamed of yourself! Then again, maybe you really need the help, so read on...
REO Foreclosure Listing Q&A (4 Q&A blogs)
Our firm sells REO foreclosure properties from multiple banks. This section is dedicated to common questions & answers from both buyers and REALTORS representing buyers in these transactions.
Tax Questions (14 Q&A blogs)
Aaaaahhhhh, taxes. Our favorite. Here are tips & tricks to minimize your tax burden. Note: we are not CPA's, so these are just general observations from our experience. But *please* speak to your CPA to discuss your specific tax situation.
The Buying Process (66 Q&A blogs)
How exactly does the buying process work? What should you expect? Whether you're a first time home buyer or you've done it several times, you'll find plenty of gems of information squirreled away in this section.

Selling A Home

All the questions you were afraid to ask (23 Q&A blogs)
If this is the first time you've considered selling your home, you probably have lots of questions that you're afraid to ask. Fear not, your answers are here!
Client Testimonials (1 Q&A blogs)
Read some glowing Testimonials from clients who have used our services to sell a home!
Contract Questions (3 Q&A blogs)
This time we'll address contract questions from the seller's point of view. What makes a contract strong vs. weak? How do contingencies work, and which ones are dangerous? These questions and many more are answered in here, so come take a look!
The Selling Process (18 Q&A blogs)
When should you list your home? How do you price it right? How do you get maximum exposure? Find answers to life's questions here... well, at least when it comes to selling your home!