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Updated almost 5 years ago,

User Stats

17
Posts
7
Votes
Caleb Smith
  • Bakersfield, CA
7
Votes |
17
Posts

Proof of moving into FHA, for loan approval

Caleb Smith
  • Bakersfield, CA
Posted

Scenario:

I'm trying to use the FHA loan strategy to acquire a home each year.

Personal credit is great, and my primary residence has plenty of equity, and income is sufficient for purchase of additional home.

Problem:

While attempting to get pre-approvals for loans, the FHA lenders are questioning that I will "down size" and move into homes of lesser value than my existing primary residence.

Mortgage Brokers suggestion:

"Get your primary residence rented out, then go rent a place for 6 months. Then maybe they will approve an FHA."

Question:

1)Has anyone else faced this issue when trying to apply this strategy on an annual basis?

2) Is there a better solution to prevent having to rent from a third party prior to purchasing a second property under an FHA?

3) Any other suggestions for applying the FHA strategy?

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