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Can I qualify for a 95% Conventional Loan when I currently have an FHA loan with minimal equity

I purchased the other property in 2008 and obtained an FHA loan. I've outgrown the house and I plan on renting it out. There might be 5% equity in the property.Currently in escrow on a bigger house and I am buying up. I am putting down 5% and have applied for a conventional. My question is Can I obtain a 95% ltv Conventional loan on an O/O purchase while I currently have an FHA loan with no equity or minimal. Not upside down. Does FNMA allow a rental agreement/ rental survey to be used and 75% of that rent to be used as income.
By loanqueen101702 from NV Feb 13th 2014
Reply

Yes, you can. But you would need enough income to qualify with both mortgage payments since you do not have 30% equity in your existing property. Please contact me at 702-355-5204 or Steve.Lee@WJBradley.com for more details.

Feb 13th 2014

Yes, as long as your income supports both homes, as you won't be able to use the proposed rental income to offset that mortgage.

Feb 13th 2014

Yes and no... If you have enough income to afford both payments, no problem. If you NEED the rental income from the existing home, you need to prove you have at least 30% equity in the existing home, and or have a minimum of two well documented years of rental property management experience. www.JoeMetzler.com

Feb 13th 2014

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