Replies to This Discussion

Permalink Reply by David A. Roebuck on March 8, 2013 at 11:33am

Actually did not know you could have two FHA mortgages at the same time.  This will be interesting.

Why is he not able to convert the VA loan to a conventional, say with only 5% down.  Is there a problem with equity

Permalink Reply by Nicole Graham on March 8, 2013 at 11:49am

He doesn't have a VA loan, he has two FHA loans. He cannot convert one to a conv bc he is behind on three months worth of payments on the home is St. Louis. He cannot do a deed in lieu bc he has to be approved for a short sale. So we are stuck unless anyone has any other ideas. He is such a nice guy, I really want to help him

Permalink Reply by Kevin - Greenville, SC on March 13, 2013 at 1:00pm

Call me - 864-485-9283

Permalink Reply by joe beauchamp on March 9, 2013 at 4:05pm

If you did NOT get the "cannot do" from HUD directly, then don't trust it. Servicers lie all the time - for convenience, out of ignorance and laziness, etc. Any deviance from the guidelines and the servicer should have asked for a variance. Let me guess, none was requested.

FHA is pretty tight with rules, if your answer came from HUD itself, ask for the rule quoted. I've had lunkhead answers from HUD people, too - which I didn't expect, but not nearly as often as servicers.

FHA seems to have some stupid rules - some are servicer interpretations and they will claim that they are from HUD when they are not, others seem stupid - like even with a willing buyer, you cannot do a short sale if the property is not being maintained. The logic here? FHA would say that an SS is a privilege - a gift to the seller, so even if he is unable to maintain the property, someone should donate to FHA to have it maintained. Anyone who really cared about minimizing loss would say sell the property - don't force it to languish for years until a court finally turns the remaining heap of burned out scraps back to FHA, duh.. I opt for SOMEONE at HUD being smart enough to give a variance, if necessary, to get the best amount back from the situation.

Permalink Reply by Kevin - Greenville, SC on March 13, 2013 at 12:58pm

We do not object to homebuyers using FHA mortgage insurance more than once if compatible with the homebuyer's needs and resources as follows: 

A. Relocations. If the borrower is relocating and re-establishing residency in another area not within reasonable commuting distance from the current principal residence, the borrower may obtain another mortgage using FHA insured financing and is not required to sell the existing property covered by a FHA-insured mortgage. The relocation need not be employer mandated to qualify for this exception. Further, if the borrower returns to an area where he or she owns a property with an FHA-insured mortgage, it is not required that the borrower re-establish primary residency in that property in order to be eligible for another FHA insured mortgage.

http://portalapps.hud.gov/FHAFAQ/controllerServlet?method=showPopup...

Permalink Reply by Kevin - Greenville, SC on March 13, 2013 at 1:07pm

Eligibility Requirements for Principal Residences, Continued - (see attached)

Attachments:

• Pages from 41551HSGH.pdf, 20 KB