Can i use an FHA loan to purchase a home if i rent out my first home?

If I understand you correctly.. The Home your living in now has a conventional loan, and you want to know if you can use FHA to purchase a new primary residence and then rent out your existing home with the conventional loan on it.. if this is your question, then yes, however be prepared to have your loan scrutinized.. Lenders are aware of a strategy called "buy and bail".. Where someone who's underwater in their current home, goes out and purchases another home in the same area, only to let the old home go back to the bank once the new loan has closed.. I'm not saying that's your intention, but the lenders will think that anyone in this situation is trying to buy and bail, so be prepared to offer letters of explanation to express your reasoning for the change.. Also, some lenders have overlays where they require you to have a certain amount in reserves to make the mortgage payment on the home your vacating.. or they might require you have at least 20% equity... I'm not saying it's impossible to do this, it's just the lender is going to look at your scenario very closely.. if you want to know for sure if it can be done, then the best advice I can give you is to contact a LOCAL mortgage broker and apply with them. He can look at your complete profile and let you know what to expect... Do not apply with a local "Big" bank, and certainly not one of those 50 states, nationwide or internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Yes, you may use a FHA loan to purchase another home. We will be asked to explain your motivation for the move and explain the new purchase will be your primary/principal residence.Let me know when we can help you get started.Kindly,Tim GrayMortgage Alliance Group619 283-4000 x.2226tim@mortgage-alliance.net

DO you have equity in your current home or are you underwater? Have you ever rented before?? You will want a super strong lease, it will be looked thru the underwriters eyes, and how far apart are these two homes? I can help you in the california market.. linda yourlonapartnerforlife@live.com email me !!

Yes You can. However if you do not have 30% equity in your existing home, the rental income cannot be used to qualify for your new purchase. You would have to qualify while caryying both mortgages.