Most banks will deny this.To Get around this you probably need to refinance your current house to conventional loan with 20-25 percent equity and then go do fha again on new house

Steven Hamilton II, I definitely agree with you on keeping it simple, but also have been threatened/denied insurance claims before.

Not only you may have a catastrophic lawsuit exceeding your policy limit, but worse, your umbrella may denied coverage (have you read all the fine print exclusions?).

I'd hate for you to find out after coming this far that the FHA loan will be denied because the 3.5% down payment required will be coming in the form of a private loan.  

As part of a servicing agreement for the investor on the house loan there are certain protocols to follow.If for example a lender simply foreclosed without following all the other workout guidelines for a defaulted loan then the insurance company on the loan would deny the claim.If the current owners put down more than 20% when they bought then usually there is not mortgage insurance.General file flow is mortgage is past due customer service calls.

Burden of proof is on the insurance carrier at that point if they want to deny coverage.

I had one mobile home that I could not sell because the park manager denied almost everybody.lot rent up to $450year 1980 and newer unless older home is in move in conditionNo one bedroom mobile homes.

That puts me in "B" areas and probably some "C" areas.When I have prospective tenants act toward me as though they think of me as a "slumlord", I add them to the denied pile.  

Seattle won't let you use ANY criminal background,  with exception of sexual abuse as an adult,  and even then you have to have a 'business justification' if you deny based on it.   

The NJ Law Against Discrimination also covers ESAs.I would understand if the tenant were upfront about this prior to the Lease signing, because I would agree the owner or property manager cannot deny the person from renting the apartment.