FHA-HAMP Program - will this be a concern for me?

[Duane Gunkler]

Divorced in March of 2015 and moved into an apartment while my ex-wife stayed in the house with the kids. She was never late, but the mortgage payment was high for her, so she has now done a modification using the FHA-HAMP program to lower the mortgage payment while she is ramping up income (having been a stay at home mom for the last 15 years). Although the divorce decree stated that she would try to refinance to get me removed from the home mortgage, she has been unable to do that and so I am included in this HAMP modification and still on the loan for that home.

My question is regarding the impact that will have on me trying to house hack when my lease is up on the apartment. My thought was to possibly purchase a multi-family unit (duplex, tri, or quad) so that I could live in one unit and take advantage of the 3.5% down payment requirement of an FHA loan. My concern is that because the HAMP program is a partial claim on the FHA loan, will that affect my ability to get an FHA loan, even though it is my ex-wife's house that is utilizing the program? I have a feeling I already know the answer, and don't like it, but I'm curious to hear some feedback and/or suggestions from the BP community.

Thank you in advance!

[Stephanie P.]

@Duane Gunkler

It really deals with the debt ratio and that's going to be your main concern I think. You should be able to buy another property using FHA (assuming your first home was FHA) because your new home is going to be your primary residence. You're right though. The first article was geared more toward alimony. Try this one.

https://www.fhanewsblog.com/2012/03/fha-loan-reade...