FHA Owner Occupancy Rules - Having a kid

[Brett Jacobson]

My wife and I currently owner occupy a duplex that we have lived in for 7 months. We are having a kid in 2 months and would like to move either to another, larger owner occupied duplex or into a single family home. Will we be able to get another FHA loan without staying in this duplex for 12 months? Is having a kid a qualifying event to get a 2nd FHA loan??

[Faith Ohai]

Hi Brett, FHA does make an exception for two reasons: 1.) job relocation 2.) family size

The mortgage for the property will be added to the DTI. The appraised value will determine how much of the rent from the property can be used to cover debt. bank usually wants 80 ltv.

Real life example: A couple purchased a 1 br condo.. 2yrs later wife is having twins and they need more space. FHA allowed them to purchase a larger home and rent the other property.

Talk to an experience loan officer.