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New Member
kaliman91
Posts: 5
Registered: ‎01-12-2009

Preparing to put house on the market

Sat down with our realtor over the weekend to get a feel for what needs to be done before putting our home on the market.

This loan is in my name only have since we were not married at the time. And at the time my wife/girlfriend was bartending and attend school so proving income for her was very difficult.

 

Well 7 years have pasted and we are ready to found our "home".

This loan was a FHA. My question is since my wife wasnt on the loan for this home but will be on the seconf would we still qualify for FHA or would we have to go conventional?

 

My realtor said yes but told me i still need to go have a chat with my current bank and the bank which my loan is at and see what all is needed etc.

Just thought i would ask here first. 

Senior Contributor
fishbjc
Posts: 3,321
Registered: ‎11-30-2007

Re: Preparing to put house on the market

Hello and Welcome!  I think FHA has more to do with credit & downpayment.  They don't care whether two people are on the loan.
Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008

Re: Preparing to put house on the market


fishbjc wrote:
Hello and Welcome!  I think FHA has more to do with credit & downpayment.  They don't care whether two people are on the loan.


Fish, I think the OP's asking more about the fact that he already has an existing FHA loan and that he (with his wife) can't use another FHA loan, since you can (AFAIK) only have one at a time.

OP: If that's the case and that is your question, I found this online. I hope this helps!

A borrower may obtain a second FHA loan when one of the allowed extenuating circumstances exists and is documented:

(1) If a borrower is relocating to another area not within reasonable commuting distance. The first property may be kept and maintained as a rental.

(2) If there is an increase in family size which dictates the need for a larger house. However, the current FHA loan must be either paid down or documented with a current appraisal to show a 75% loan-to-value or less.

(3) If the borrower is vacating a jointly-owned property, with the co-mortgagor to remain in the residence (such as in a divorce situation).

(4) A borrower who is a non-occupying co-borrower on property purchased with an FHA loan as a principal residence for other family members may have a joint interest in that property as well as in his or her own principal residence.

In all other cases, the purchasing borrower must either pay off the FHA loan or terminate ownership. FHA is particularly concerned that the program not be used to assist investors in acquiring rental properties with the low down payments and underwriting particular to the FHA loan program. Of utmost importance in each case is the length of time the previous property was owned by the borrower and the circumstances that compel the borrower to seek another FHA-insured residence.

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

New Member
kaliman91
Posts: 5
Registered: ‎01-12-2009

Re: Preparing to put house on the market

HMMM.

 

Not really sure those seem to be if you are wanting to keep the first FHA loan. Since from reading on here they take the middle score of your lowest person's credit it would be taken from my wifes.

And like mentioned we will be selling this house after 7 years. And buying a new one because we have out grown this smaller home.

Thanks for the info though i will see what i can come up with on google.

Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008

Re: Preparing to put house on the market


kaliman91 wrote:

HMMM.

 

Not really sure those seem to be if you are wanting to keep the first FHA loan. Since from reading on here they take the middle score of your lowest person's credit it would be taken from my wifes.

And like mentioned we will be selling this house after 7 years. And buying a new one because we have out grown this smaller home.

Thanks for the info though i will see what i can come up with on google.




Okay, so I think a little more clarification is needed.

Are you asking if:
1) Your wife can be on the new FHA loan AFTER you've sold your existing FHA secured home? (Yes. If her credit's good enough and her income can be verified via W2s and/or paystubs)

2) Can you begin selling your existing FHA secured home and buy another using an FHA loan in your wife's name? (Nope. That would be mortgage fraud)

3) Can your wife be on the loan WITH you AFTER you've sold your existing FHA secured home? (Yep, if she qualifies via credit and income verification)

Bottom line is that a married couple can only have one FHA loan at one time (barring the exceptions I posted earlier) whether or not the current loan is in one spouse's name or both. It's one FHA loan per customer (in this case, customer = couple).

If you want to use an FHA loan AFTER you sell this home, then yep. :smileyhappy:

If you're asking whether or not your wife would qualify, you'd need to post her stats (FICO credit scores, income, Debt-to-Income ratio, recent baddies, etc).

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

New Member
kaliman91
Posts: 5
Registered: ‎01-12-2009

Re: Preparing to put house on the market

[ Edited ]

Sorry i must be confusing myself and not explaining it correctly.

 

I bought a house 7 years ago" in my name only we were not married" with FHA.

 

We are now married and will be putting it up for sale.

Once sold would we be able to qualify for another FHA loan since my wife will now be on the application  and it will be her first home loan or since i already used a FHA loan it doesnt matter we cannot apply again so  our only option a conventional loan? 

 

Hope i clairified this alittle better  :smileywink:

 

 

Edit:

I am just unclear if we can apply for another FHA loan since i already got one 7 years ago and i will no longer be a "first time home buyer".But figured she would now be applying with me so maybe she would qualify as a first time home buyer.

Message Edited by kaliman91 on 01-12-2009 10:57 AM
Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008

Re: Preparing to put house on the market


kaliman91 wrote:

Sorry i must be confusing myself and not explaining it correctly.

 

I bought a house 7 years ago" in my name only we were not married" with FHA.

 

We are now married and will be putting it up for sale.

Once sold would we be able to qualify for another FHA loan since my wife will now be on the application  and it will be her first home loan or since i already used a FHA loan it doesnt matter we cannot apply again so  our only option a conventional loan? 

 

Hope i clairified this alittle better  :smileywink:

 

 

Edit:

I am just unclear if we can apply for another FHA loan since i already got one 7 years ago and i will no longer be a "first time home buyer".But figured she would now be applying with me so maybe she would qualify as a first time home buyer.

Message Edited by kaliman91 on 01-12-2009 10:57 AM



I am 99.9% sure that since 7 years has passed since your first use of the FHA program (FHA guidelines, from what I've read, cite 3 years between FHA use), that you'd be fine for FHA. :smileyhappy:

Sorry to be so picky with what you were saying -- we're supposed to close in 8 days, so I'm cranked out on caffeine and my brain hurts! :smileywink:

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

New Member
kaliman91
Posts: 5
Registered: ‎01-12-2009

Re: Preparing to put house on the market

Not a problem at all.I didnt take it wrong. I know i didnt explain it very well.

 

Thanks for the help.

Super Contributor
ShanetheMortgageMan
Posts: 7,753
Registered: ‎09-28-2007

Re: Preparing to put house on the market

You can use FHA over and over and over and over and over and over... there is no time seasoning eligibility requirement for FHA loans.
New Member
kaliman91
Posts: 5
Registered: ‎01-12-2009

Re: Preparing to put house on the market

Thanks Shane.

 

Havent looked at my credit report in awhile last time was Nov of 07 i was told it was 720 when i bought a new truck and boat in the same month.

Ran all three last night just to see what was on it. I got a 790 from trans 782 from experian and 752 from equifax. Only got the transunion for the wife who i thought was gonna be the downer but we have repaired here over the last 2 years to 762. SO good news indeed.

 

Now we just have to sit down with our banks and see what they can offer us. 


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